While the stock market's brief sharp drop in mid-May has largely been erased in recent days, most of our upside has been from
the U.S. dollar declining as the euro, and foreign stock markets, have been hot (after a long spell of underperformance for both).
China pays a huge price when
the U.S. dollar declines.
In commodity markets, gold traded down 0.3 % at $ 1,332.63 an ounce, having climbed 1.7 % as
the U.S. dollar declined on Wednesday.
And so, necessarily, given how the ETF is made up, when the value of
the U.S. dollar declines vs. the Canadian dollar, it follows that the value of your units of DLR declines as quoted in Canadian dollar terms.
If you are worried about the possibility of
a U.S. dollar decline, our advice is to reduce your exposure to U.S. stocks and other U.S. dollar assets.
For example, a company that makes baseball bats with imported wood will need to pay more for the wood if
the U.S. dollar declines.
Not exact matches
TORONTO, May 1 - The Canadian
dollar fell to a four - week low against its
U.S. counterpart on Tuesday before paring its
decline, as Bank of Canada Governor Stephen Poloz said the outlook for the domestic economy is good despite the overhang of high household debt.
Instead, operating costs for the same facilities that were hoping to see costs
decline to $ 12 / bbl (in today's
dollars) by 2015 are seeing costs well above
U.S. $ 40.
The Canadian
dollar quickly dropped by more than a cent against the
U.S. dollar, a 1.5 %
decline.
(In 2014, Nike's global sales grew more than 10 % and Under Armour's grew nearly 30 % while Adidas's grew only 2 % on a currency - neutral basis, and
declined when measured in
U.S. dollars.)
The
U.S. dollar rose to a two - week high against a basket of currencies on Friday on rising
U.S. yields, while sterling extended a
decline in the wake of dovish comments from the head of the Bank of England.
Peterson: Two major risks are a spike in interest rates and a rapid
decline in the value of the
U.S. dollar.
HOUSTON, Feb 5 - Oil prices settled lower on Monday as rising
U.S. output, a weaker physical market and recent
dollar strength added to the pressure from a widespread
decline across equities and commodities markets.
«We could soon see a major
decline in the
dollar and the price of
U.S. Treasuries, which would translate directly into a significant rebound in interest rates.
One of the key drivers has been the
dollar, which has lost 3.2 % against a basket of major currencies so far this year, a
decline that was exacerbated last week when
U.S. Treasury Secretary Steven Mnuchin suggested President Donald Trump's administration favored a weaker currency.
With global synchronized growth underway and demand outstripping supply in a number of cases, not to mention the
U.S. dollar in
decline and inflation on the rise, commodities are poised to be among the best performing asset classes in 2018.
U.S. inflation would cause the
dollar to
decline and send the loonie even higher, pummelling the domestic manufacturing sector.
The
U.S. dollar clung to gains amid fading concerns over a global trade war, while oil soared on a reported
decline in
U.S. crude inventories and the possibility of supply disruptions.
The onset of price
decline coincided with a stronger
U.S. dollar beginning in June 2014 that may be related to the end of quantitative easing and to an improving
U.S. economy.
This caused the
U.S. economy to slow, interest rates to
decline and the
dollar to fall.
Bonds and the
U.S. dollar both
declined, while utilities were up strongly as could be expected after such a terrible string of losses.
Some critics of the program alleged it would cause a spike in inflation in the
U.S. dollar, but inflation peaked in 2007 and
declined steadily over the next eight years.
In any case, the year - long
decline has been a short - term tailwind for gold, which is priced in
U.S. dollars and, therefore, becomes less expensive for foreign buyers when it sinks.
A stronger
U.S. dollar versus the euro and other currencies in Europe, the Middle East and Africa helped business travel per diems
decline in the region in 2015, despite healthy demand.
Presently, we don't observe that, but it is important to keep in mind that the strength in commodities largely mirrors a persistent
decline in
U.S. real interest rates, and in the value of the
U.S. dollar.
In an interview with The Globe's Iain Marlow in early 2014, Mr. Poloz suggested that the recent
declines in CADUSD had been fuelled by the «strong
U.S. dollar.»
We expect a further gradual
decline in China's currency against the
U.S. dollar in 2017, but a large devaluation is not our base case.
International markets did even better, with returns for
U.S. - based investors benefiting from a
decline in the
dollar (which logged its worst month in nearly a year).
In my view, the most likely accompaniment to economic weakness would not be a
decline in nominal rates, but somewhat accelerated inflation (meaning that real interest rates might very well fall to negative levels), and possibly substantial weakness in the
U.S. dollar.
The solid early performance thus far marks a stark contrast from the low expectations, where analysts were expecting aggregate earnings to
decline by 4.5 % on the back of the strong
U.S. dollar.
The recent
decline in the
dollar is coming off those lofty levels; the U.S. Dollar Index is still trading more than 10 % above where it was when the post-QE3 run began in 2014, and more than 25 % above the low of the past decade (set in
dollar is coming off those lofty levels; the
U.S. Dollar Index is still trading more than 10 % above where it was when the post-QE3 run began in 2014, and more than 25 % above the low of the past decade (set in
Dollar Index is still trading more than 10 % above where it was when the post-QE3 run began in 2014, and more than 25 % above the low of the past decade (set in 2008).
Luke first became bullish on gold and other natural resource back in 2002, following a sharp
decline in the value of the
U.S. dollar and taking notice of extraordinary monetary policies in Asian countries at the time.
In the past year, the
U.S. dollar has
declined against virtually every currency and commodity.
The real
declined 10 % against the
U.S. dollar during the quarter, while the rupee hit a record low.
John Williams explains why he believes the dramatic
decline of the
U.S. Dollar will be the primary cause for hyperinflation and gives his view on owing gold.
The main contributors remain the same:
declining oil and commodity prices, renewed concerns over the pace of expansion in China, and the impact of rising interest rates and a strong
dollar on the
U.S. economy.
Global shares were higher in Asia - Pacific trade Tuesday, lifted in part by a stronger
U.S. dollar, though markets in Australia bucked the trend due to
declines in utility and mining stocks.
This helps explain why our debt burden has not yet triggered what standard economic theory would dictate: a steep
decline in the value of the
U.S. dollar followed by a severe contraction of the American economy when we found we could no longer afford the foreign goods we like so much.
Nigeria's economy, despite its substantial oil production (it is the fourth - leading supplier of oil to the
U.S.),
declined precipitously in the 1980s: at the beginning of that decade a naira was worth more than a
dollar, while today's going rate values the naira at less than a dime.
But with the ongoing
decline of the
U.S. birth rate, the two industry giants, Pampers and Huggies, are socking it out, fighting for the
dollars that come with diapering those precious bottoms.
Oil prices on Thursday hit their highest since December, 2014, pushed up after
U.S. crude inventories posted a 10th straight week of
declines and as the
dollar continued to weaken.
The lira stood at 4.7775 against the
U.S. dollar at 0530 GMT, weakening from a close of 4.6746 on Tuesday and having hit a record low of 4.8450 overnight, bringing its
declines so far this year to more than 21 percent.
Moreover, while some believed that the
U.S. dollar (USD) would ultimately
decline on a Trump victory, we think this view is mistaken.
Beyond spreads, the
U.S. dollar is no longer
declining and long - term interest rates rose by 50 bps in under two months.
U or else sitting in a
U.S. dollar cash balance in your brokerage account, there's not much of a difference: You «lose» Canadian
dollar equivalent when the value of USD
declines with respect to CAD.
The Fund has the potential to benefit from a
decline in the value of the
U.S. dollar while producing an income stream.
Just after quarter end, this unease became reflected in equity markets both abroad and in the United States, as rapidly
declining oil prices and a rising
U.S. dollar drove both
U.S. and international market indices off their previous highs.
If the
U.S. dollar continues its steady
decline, and the
U.S. economy slows in isolation,
U.S. companies with global sales would likely end up in better shape than smaller companies.
This is usually a strong sign that the EUR / USD
decline is not
U.S. dollar - related and most likely driven by some kind of negative EU news.
His rationale wasn't complicated: Canada was the worst - performing developed market in 2015, and Canadian stocks were extremely cheap in
U.S. dollar terms given the loonie's dramatic
decline.