The number is not good for the dollar. There is increased difficulty for the U.S. to finance its swelling trade deficit.
More Quotes from Ashraf Laidi:
They don't want to do that signal that it wants a weaker dollar at a time when interest rates are already near the level where the Fed wants them and at a time when inflation risks remain. The Fed will be unable to push interest rates much much higher when the U.S housing sector has already begun to slow down.Ashraf Laidi
Markets could see higher risk of slowing activity from a recurring increase in oil prices. In that case, the Fed will safely close the first chapter of the tightening cycle and move to 'wait' mode. Such a plausible scenario would be a negative for the dollar.
Ashraf Laidi
(The Canadian dollar) has been a big play from overseas players, especially those who are wanting to play it against the Japanese yen to take advantage of the carry trade, which is right now beginning to overturn.
Ashraf Laidi
Today's trade figures are a stark reminder to the structural deficiencies of the U.S. economy and the reason for our negative dollar outlook for the year despite (its) recent bounce.
Ashraf Laidi
This does not mean that currency markets have completely eliminated all concerns about the trade deficit when assessing the dollar,
Ashraf Laidi
After the Fed comes out with its rate hike, and when it communicates to the market that it's satisfied with where rates are for the time being, then we may go back to focusing on the deficits.
Ashraf Laidi
Readers Who Like This Quotation Also Like:
Cut quarrels out of literature, and you will have very little history or drama or fiction or epic poetry left.Robert Lynd
The awful thing, as a kid reading, was that you came to the end of the story, and that was it. I mean, it would be heartbreaking that there was no more of it.
Robert Creeley
As the family goes, so goes the nation and so goes the whole world in which we live.
Pope John Paul II