Marc Chandler, Managing Partner at Bannockburn Global ForEx and Editor of the Marc to Market blog, joins us to discuss some of the moves in global currencies, recent US economic data for GDP growth and the PCE inflation deflator metrics, commodities inflows, wage growth, corporate profits, and how this all ties into central bank policies. We note the continued strength in the US dollar, and the major weakness in the Japanese Yen, and what implications those may have on the global economy, and interest rates in the respective countries.
With corporate profits remaining very high, and the general US equities holding up near all-time highs, and dips continuing to be bought, we probe whether there is anything that may change the tone of the markets or the central bank outlook. Marc outlines that with the weaker than expected GDP growth, and weakness in service PMI jobs, that if we also see a weaker than expected jobs report next week, that it could moderate the Fed’s confidence, and possibly accelerate the plans to start cutting rates later in the year.
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