Weekly Note – A Dollar Dilemma

A Dollar Dilemma

Good Morning,

There is no doubt that big swings in the value of the US Dollar have a big impact on global economic growth and financial markets’ performances. Between June 2014 and January 2016, as the Dollar rose by over 20%, global equity markets struggled (Emerging Markets suffering the most), commodity prices plunged and deflationary concerns moved front and centre.

Since the Dollar topped in late January, however, everything has turned around. The Dollar has since traded sideways, financial markets have performed pretty well overall and economic concerns have abated. While this cannot all be attributed to the Dollar, we need to recognize that the Greenback is extremely important for both financial markets and the global economy.

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GM360 Note – 28th October 2016

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