Marc Chandler, Managing Partner at Bannockburn Global ForEx and Editor of the Marc to Market website, joins us for a discussion on the strong US dollar, the health of other global currencies, Fed policy expectations, and the health of the US economy. One of the reasons the greenback has bounced back higher is due to concerns with other nations facing even higher inflation, and central banks even further behind the curve.
We look at how the markets reacted when the dollar had rolled over and a risk on mentality came back into the markets, but Marc mentions that move may now be over, with all eyes on the Jackson Hole symposium next Friday.
We discuss the economic health in the US and the mixed signals being received with stronger jobs data and retail sales, but weaker GDP growth and housing markets. Marc then shares the data he is watching that indicates a shift in expectations from rate cuts in early 2023 to extended Fed rate hikes to continue fighting inflation.