The Greenback Strikes Back

One of the biggest stories in investing this year has been the U.S. dollar’s worst performance in over half a century; its weakest since the early 1970s. The US Dollar Index, however, appears to have bottomed out back in late September and in the last few days, particularly since Fed Chair Powell dampened expectations for a December interest rate cut, the Dollar has been bouncing back.

This morning’s sweep of global markets finds the US Dollar steamrolling, as everything else is down. In currencies, both Bitcoin and Gold are down, falling 2.6% and 0.5% respectively. Meanwhile, the Euro, Loonie, Aussie, Pound and Yen are all down 0.2%-0.6%. Commodities, priced in US Dollars, are also under pressure with Copper falling 2.8% and Crude Oil falling 1.5%.

The Loonie could be active later in the day depending on how the market responds to the Canadian Federal Budget, due at 4:00 pm EST.

Stocks are also in retreat today. US index futures are down 0.6% to 1.3% with NASDAQ futures the weakest. In Europe today, the DAX is down 1.3% and the FTSE is down 0.5%. In Asia Pacific trading Tokyo fell 1.8%, Sydney dropped 0.9%, and Hong Kong lost 0.8%. 

Earnings season continues with generally positive results from several mid-size companies, but the market reaction has been less enthusiastic with a number of stocks seeing profit taking against the news. Headliners include Palantir Technologies, down 7.8% premarket; Shopify*, down 3.5% premarket; and Uber Technologies, down 4.8% premarket. Mariott International, and Pfizer are steady on their earnings beats. Spotify is up 5.0% premarket. Advanced Micro Devices* and Suncor Energy report after the close today.

*Shares of Shopify and Advanced Micro Devices are held in some portfolios managed by SIA Wealth Management.

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