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Dollar Surge Continues
The US dollar is experiencing a powerful surge. It is a function of rising US rates and gradually growing confidence that the Federal Reserve may hike rates three more times this year, rather than the two that the median Fed forecast (March dot plot) anticipated. The dollar's advance is also a reflection of poor developments abroad. Consider the recent news stream. The Japanese economy contracted in Q1 18, and the contraction was sufficiently large as to offset in full the revised slower growth reported in Q4 17. That means that net-net world's third-largest economy is smaller now than at the end of last September. ... (full story)
