Zacks’ Voice of the People Highlights user inthemoneystocks: “Markets Struggle at the Flat Line as Dollar Higher” from the People & Picks community.
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Markets Struggle at the Flat Line as Dollar Higher
The markets are holding around the flat line, struggling after the Dollar moved higher today. The big catalyst today was a move by Japan to intervene in the currency markets after the Yen hit 15-year highs against the Dollar. The Dollar jumped three percent against the Yen after this move. Countries continue to compete for the weakest currency in order to help their own exports.
A country’s cheap currency in relation to other currencies means their goods will be cheaper to the world and more likely to be bought. Japan is trying to drive the Yen lower to help exports. Other countries are trying to do the same. China, which has has been called a currency manipulator has done this for years, pegging their currency with the US Dollar to keep their exports strong.
A higher U.S. Dollar means a lower market. The markets are down slightly on the day as the PowerShares DB US Dollar Index Bullish (UUP) is up 0.09 to $23.61 (+0.38%). The SPDR S&P 500 ETF (SPY) is down 0.15 to $112.50 (-0.32%).
Economic news this morning was generally poor. This is quite a change from the last two weeks which saw positive news hit the markets day after day. Today, the headline economic report was the poor Empire State Manufacturing Index which fell to fourteen month lows.
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