With little evidence that tightness in the U.S. labor market is slackening, and oil prices a wild card for inflation as winter approaches, the FOMC had few options but to remain vigilant about inflation,
The market is pretty bullish on the dollar. With the U.S. economy enjoying low inflation and strong growth, and with the stock market picking up again, it makes it a tough go for the euro.
The market is pretty bullish on the dollar,
The market is not focused on imbalances, but rather interest rates and in the US right now they are high and getting higher across the yield curve.
European companies are flush with cash and they want to own market share in the United States, ... They want to own the 'new economy.'
We think that as long as labor market conditions remain tight and oil prices high, the Fed will retain an inflation bias which could last until early spring.
Markets become disorderly due to aggregate psychology. That's difficult for anyone to assess at any time, but you look for red flags, like significant overreactions to data,