backdoc » October 3rd, 2014
THE DOLLAR IS NOW REVERSING ITS' SELF FROM THE QE PROCESS, SIX YEARS IN FACT.
THE QUESTION I HAVE IS WHAT WILL THE TREASURY DO WITH THE FED BALANCE SHEET OF 14.5 PLUS TRILLION. THE ANSWER TO THAT QUESTION WILL BLOW AWAY RUMORS OR SUBSTANTIATE OTHERS !!!!
THE STOCK MARKET WILL ALSO NEED TO REVERSE ITS' SELF IN SOME WAY AS THE DOLLAR RISES. AS OIL DROPS AND THE DOLLAR RISES WATCH FOR BIRTH PAINS IN THE STOCK MARKET.
I'M LOOKING FOR A RALLY THAT WILL CHALLENGE THE ALL TIME HIGHS THEN I LOOK TO SEE A PRICE CORRECTION IN THE MARKETS TO THE DOLLAR.
THEY WILL ADJUST DOWN !!! MMMMM
GET READY TO BE SHORT !!! SMILE !! DOC IMO
Dollar surges to four-year high on robust U.S. jobs report
BY GERTRUDE CHAVEZ-DREYFUSS NEW YORK Fri Oct 3, 2014 9:59am EDT
A U.S. one-hundred dollar bill (C) and Japanese 10,000 yen notes are spread in Tokyo, in this February
CREDIT: REUTERS/SHOHEI MIYANO
(Reuters) - The dollar climbed to a more than four-year peak on Friday after a report showing the U.S. economy created more jobs than expected last month, which suggested that the U.S. recovery was on a stable path.
The dollar index, a gauge of the greenback's value against six major currencies, was on track for its best yearly gain in nine years. The index was up 8 percent so far in 2014, posting weekly gains for a record 12 straight weeks.
Data from the Labor Department on Friday showed U.S. non-farm payrolls rose 248,000 last month and the jobless rate fell to 5.9 percent, the lowest since July 2008.
The only sore point, however, was the small growth in wages. Average hourly earnings rose just 2.0 percent. Before the last recession, hourly earnings often rose at above 3 percent per year.
"Overall it's a positive report for the dollar and points to continued growth and recovery in the U.S.," said Sireen Haraji, currency strategist, at Mizuho Corporate Bank in New York.
The dollar index hit a high of 86.59 .DXY, its strongest level since June 2010. It was last at 86.56, up 1.1 percent.
The greenback jumped to 109.64 yen JPY= and last changed hands at 109.59, up 1.2 percent, its largest daily gain since mid-September. Against the Swiss franc, the dollar hit a 15-month high and it was last at 0.9661 franc CHF=, up 1.3 percent.
The euro fell as low as $1.2518 EUR=, a more than two-year low. It last traded at $1.2522, down 1.2 percent.
Still, the robust U.S. jobs report may not be a game-changer for the Federal Reserve. Some market participants still expect the Fed to hold fire when it comes to raising interest rates.
"I don't think this report will be enough to persuade the Fed to raise rates sooner than expected," Mizuho's Haraji said. "The fact that wage growth is flat suggests very little inflation and gives the Fed more time to be patient with hiking interest rates."
In the interest rate futures market, however, traders boosted bets the Fed could raise interest rates slightly earlier in 2015.
Rate futures contracts still show traders are betting the first Fed rate hike will come in July 2015, based on CME FedWatch, which tracks rate hike expectations using its Fed funds futures contracts.
But traders now see a 40 percent chance rates could rise as early as June 2015, up from 34 percent before the non-farm payrolls report.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)
Dollar in the best performance in six years
BAGHDAD / obelisk: the dollar is heading to the conclusion of transactions a month on the best quarterly gain in six years but stopped breathtaking while Some analysts believe that the rally is losing momentum .
The greenback rose more than seven percent against a basket of major currencies over the last three months and made progress for a record ten consecutive months due to expectations that the Federal Reserve (the Fed) will raise interest rates before counterparts in Japan and the euro zone .
Against the euro, the dollar scored its highest level in nearly two years at 1.2664 dollars on trading platform Aa.abi.as but the single currency stood at 1.2692 dollars Tuesday as investors waited for data consumer price inflation in the euro zone at 0900 GMT .
It is expected that the numbers show inflation eased to 0.3 percent in September from 0.4 percent in August / August to remain within the European Central Bank says it is "danger zone" which is any reading below one percent, and much lower than the target level of about two percent .
The index of the dollar 85.620 is so far from the peak of 85.798 registered last night, a high level unprecedented since July July 2010 .
The dollar rose to a new level in six years at 109.75 yen on Monday and hit him in the latest price 109.30 yen, down about 0.2 percent, but is up about five percent this month .