Dollar skids to the low of the day
The dollar just can’t get a break. Inflation has been the thorn in the side throughout the year. An interesting question is what would be inflation if the dollar had not fallen by 10% this year?
The Fed wants to blame items like a cell phone charges but it’s been five years of inflation, missing estimates. This is a lot of objects.
The dollar is indifferent. It got some momentum when Irma mostly missed Florida, and then the Congress passed the debt ceiling without any problem, the Fed has been more severe than expected, then the Republicans pulled out a huge tax reduction.
The US dollar is higher this week, but this is nothing to get excited about. The USD/JPY rose to a two-month high of 113.26 Wednesday, but has gone back to 112.27, just a little on the week.
The Fed is talking again about his confidence in a return to inflation of 2%, but this line has become a bit of a joke.
I also have the impression that the market is losing faith that Yellen is back and that the Asset will be to appoint a person (or a small number of people) who are willing to tinker.
Or maybe it is just the end of the month and the dollar will go back in gear Monday.
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