Strong US Dollar cheers up the economy
United States labor market is literally booming and the drive of the growth is strong dollar. The Federal Reserve’s monetary policies are working right. The United States currency also cheered the stock markets. If the market continues to boom till September, the increase in the borrowing rate is assured. Deutsche Bank AG’s Daniel Brehon said that the risk should be taken from the top.
He works for the investment bank as a strategist in the New York. The strong dollar will definitely add some confidence in minds of policy makers. The U.S. currency was compared by the Bloomberg Dollar Spot Index with top 10 counter parts in the world. The dollar registered sharp growth of 1.1 percent and jumped to 1,180.11 on the index.
Since last three-week, the dollar was falling against the euro but bounced back with sharp 1.6 percent. It gained around 0.9 percent against the yen. The dollar is expected to gain more against Euro in for the first time in the June. As the commodity futures trading commission made the data public, the hedge fund and wealth manager started increasing the futures position.
The data driven approach of the Federal Reserve is working well since the financial crisis and it is slowly moving towards rate increase. The Greek crisis is forcing official to take slow steps. Chairman Janet Yellen acknowledged the progress in the job market. The growth in the Non agricultural jobs is more than projections. The domestic job situation will further trigger more growth due to increased disposable income.