PowerShares DB US Dollar Bullish ETF
How IBM’s Strategic Imperatives Performed in Fiscal 4Q17
Earlier in the series, we discussed IBM’s (IBM) geographical revenues and the impact of currency fluctuations, especially the US dollar’s (UUP) impact on the company’s fiscal 4Q17 results.
Market Paradox: Stocks Reach Record Highs Despite Headwinds
We’ll explore whether record highs signal a top for equity markets or whether there’s still some room for growth in the current bull market.
Amazon’s International Segment Saw Improvement in 2Q15
The year-over-year revenue growth trend for Amazon’s International segment was falling until last quarter.
Market Volatility Could Fall More This Week
Volatility in the global markets fell considerably in the previous week. The key risks subsided that spiked risk aversion in the last few weeks.
Gold Prices Have Been Flat despite the Weak Dollar
Gold (IAU) (GLD) prices usually have a strong negative correlation with the US dollar (UUP). Gold, like other commodities, is denominated in the dollar.
Can Cisco Beat Its Own Revenue Forecast in Fiscal 3Q15?
Cisco is expected to announce its fiscal 3Q15 earnings on May 13. Cisco expects its year-over-year revenue growth to be 3%–5% in the quarter.
Why the US Economy Stalled in 1Q15
The US economy stalled in 2014 for several reasons, including seasonality, weather, strength of the dollar, the West Coast port strike, and the oil price slump.
How Sentiments surrounding the Dollar Are Playing on Gold, Miners
As the US dollar lost some ground on February 20, 2017, its weakening gave a push to gold prices. Gold rose ~0.2% over its previous trading day’s close.
How the US Dollar Index Is Affecting Oil
The US Dollar Index rose ~0.1% to ~94.15 yesterday, while August WTI oil futures rose 0.4% to $74.11 per barrel.
Have We Seen a Short-Term Bottom for the Dollar?
The US Dollar Index (UUP) managed to close in positive territory in the week ended February 8, 2018, after posting seven consecutive weekly losses.
Will Alphabet Woo Its Investors Again with Its 3Q15 Results?
Alphabet (GOOGL), the parent company of Google (GOOG), is scheduled to announce the third quarter earnings of 2015 on October 22.
Why Did the US Federal Reserve Turn Hawkish at Its June Meeting?
As expected, the Federal Reserve increased the interest rate by 25 basis points after its June meeting, which concluded on June 13.
How Will the Fed Affect the Earnings Recovery Environment?
The dollar index (UUP) rallied about 22% between October 2014 to July 2016.
Mixed Data Release Regarding Durable Goods, Unemployment Claims
The US Dollar Index, which measures the strength of the US dollar against other major currencies, rose to a high of 97.69 in early trading after the release of the durable goods data. The US Dollar Index was trading flat as of 12:30 PM EST.
Why Did Red Hat Stock Fall Last Week?
Red Hat (RHT) stock fell 13.6% last week. The stock fell 14% on December 14, 2016, due to disappointing 3Q16 results.
Mexico’s Manufacturing Activity Leaps to a 1-Year High in June 2017
Mexico’s manufacturing PMI increased to 52.3 in June 2017 compared to 51.2 in May.
A Bounded Relationship of Gold and the US Dollar
The US dollar rose 0.32% on January 3, which led to a lower price for spot gold and silver. During the last month, the US dollar (UUP) has fallen 0.78%, and gold has risen 2.9%.
Precious Metal Moves on Thursday, September 28
Gold touched a one-month low on Thursday, September 28, due to the rise of the US dollar over the speculation of another rate hike in December 2017.
September Manufacturing Report: Are US Business Conditions Better?
The US September manufacturing PMI (purchasing managers’ index) report indicated an improvement in US (QQQ) (IWM) business conditions.
Will Crude Oil Futures Break Key Resistance of $54 per Barrel?
WTI (West Texas Intermediate) crude oil futures contracts for May delivery rose 1.2% to $51.6 per barrel in electronic trade at 5:20 AM EST on April 5.
SaaS, PaaS Playing a Role in Oracle’s Growing Net Margins
In the past ten quarters including fiscal 1Q17, Oracle’s revenues have missed analyst expectations nine times.
Why Holding Cash Is Risky In The Long Run
Holding cash is risky, as it provides negative real returns in the long run.
Rising Stocks and Bonds Continue to Lower Volatility
Last week, volatility in global markets continued to trend lower as US markets, barring the Dow 30, closed on a positive note. In this series, we’ll analyze how different asset classes performed last week, and discuss their outlook.
Do Large Caps Offer More Value Relative to Small Caps?
Large caps will be in a much better position to navigate through this period given their cash positions.
Goldman Sachs: Where Could the Chinese Yuan Head in 2017?
After Donald Trump’s US election win, the Chinese yuan fell 1.6% against the US dollar (UUP) (USDU) (UDN) between November 9 and November 22, 2016.
Why Was VIX Index Down 16% Last Week?
After a 20% surge in volatility in the week of September 4, volatility in the global markets dropped as markets opened on September 11.
Global and Equity Market Risks Are Hovering over 2016
In 2015 many firms in the US (IWM) inflated their earnings and assets, as cheap credit was available.
Alliance Data’s LoyaltyOne Business Segment Fell in 4Q15
Alliance Data’s (ADS) LoyaltyOne business segment’s revenues fell 9% YoY (year-over-year) from $398 million in 4Q14 to $364 million in 4Q15.
Which Indicators Are Playing Precious Metals?
Besides geopolitical issues, the US dollar has also been playing an important role in the determination of the price movement for precious metals.
The Strengthening US Dollar Has Affected Oil Prices
Weak global demand and a strengthening dollar have affected oil prices.
Your Update on the FOMC July Meeting
In its July meeting, the Federal Open Market Committee decided to maintain its target range for the federal funds rate at 1%–1.25%, in line with the market’s expectations.
Are We Headed for Another Week of Low Volatility?
The ascent of the global markets continued last week, with indexes continuing to scale new heights.
Does the Rise in Eurozone GDP Indicate a Turning Point?
According to a Eurostat report, Eurozone fourth quarter economic growth for 2016 expanded to 0.5% as compared to the 0.4% improvement in the previous quarter.
Alibaba Projects a Slow Growth in Active Buyers
Alibaba reported a 31% YoY growth in its active buyers in the quarter ending June 2015. It declined by 6% when compared with the quarter ending March 2015.
Canada’s September 2015 Manufacturing PMI at a Glance: Historic Lows
The RBC Canadian Manufacturing PMI for September marked an all-time low. At 48.6, business conditions show continued deterioration from August’s 49.4.
FOMC’s Meeting Could Impact the Dollar and Oil Prices
The FOMC’s two-day meeting will be held on December 12–13, 2017. The Fed is expected to raise the US interest rate during this meeting.
A Weaker Euro Could Lead to Inflation in Europe
A weaker euro could lead to inflation in Europe. The depreciation in the euro was initially due to the appreciation in the dollar.
S&P 500 and Commodities Rose on March 29
The information technology, energy, and materials sectors rose 2.2%, 2.2%, and 1.9%, respectively, on March 29, 2018.
Why Precious Metals Fell on Monday, September 18
Precious metals saw a down day on Monday, September 18. Gold, silver, and platinum fell 1.1%, 3.1%, and 1.1%, respectively, on the day.
Will the Euro Appreciate More This Week?
The euro (FXE) closed the week ended November 21, 2017, at 1.193, appreciating 1.14% against the US dollar (UUP).
How Emerging Market Funds Kept Their Momentum
In the current market scenario, the global markets (ACWI) (VTI) (VEU) are mainly driven by the monetary stimulus provided by the central banks.
Once Again, Soros Makes Money off the UK’s Woes
Four days before the UK (EWU) decided to leave the European Union (VGK), Soros warned the markets of a “Black Friday” and a crash in the pound.
How Should You Approach Investing in Europe-Focused Funds?
The financials sector continues to be the top-invested sector, with four of the 12 funds choosing it as their most preferred sector. However, the number of funds choosing financials is down from six in the previous quarter.
What Has Caused the Correction in Transportation Stocks?
DJTI’s price-to-earnings ratio climbed from 15.7x at the start of 2013 to 20.2x at the end of 2014. This year, transportation stocks (IYT) have taken a hit, leading to multiple contractions.
A Strong Dollar Is a Major Headwind for Export-Oriented Stocks
A stronger dollar is a headwind for export-oriented stocks. The US economy is relatively robust.
Will the Euro Continue Its Momentum?
Markets will remain focused on the ECB policy meeting scheduled for Thursday this week.
What Drove GameStop’s Revenues in Fiscal 4Q15?
While GameStop’s pre-owned sales were flat YoY (year-over-year) in fiscal 4Q15, comparable store sales rose 3.1% YoY.
The US Dollar Is Strengthening: How Will It Impact the Economy?
The US dollar index (UUP) is rising on a gradual basis. Between November 9, 2016, and December 16, 2016, the dollar index rose nearly 4.5%.
Will FOMC Keep Tightening Screws on the US Economy?
FOMC members after the latest policy statement have remained biased toward further rate hikes, but markets have questioned the Fed’s hawkishness.
Why Gold Failed to Catch Bids despite Escalating Trade Tension
In times of escalating geopolitical or economic concerns, gold often acts as a safe-haven asset. This year, however, gold’s safe-haven appeal seems to be somewhat tarnished.
Why An Improving Economy Is Good For The Dollar
This article discusses the ways in which an improving economy is good for the dollar.
PC Market Not Expected to Stabilize before 2017
In calendar 2Q15, PC shipments fell globally by 9.50%. This situation is likely to continue through 2016 and isn’t likely to stabilize before 2017.
How the US Dollar’s Rise Could Impact Oracle’s Growth in 2017
The strengthening US dollar (UUP) has been pressuring the entire technology sector, and growth in Oracle’s (ORCL) top line is vulnerable to fluctuations in the dollar.
Us Dollar Hits Monthly Highs and Weighs on Oil Prices
The US dollar began 2016 on a bullish note and was trading at 99.5 levels in the early hours of trade on January 6. Crude prices began 2016 on a bearish note.
The Strong Dollar Is Dragging Down US Companies’ Revenues
As earnings reports and analyst call transcripts show, many of the companies reporting sales misses cited the strong dollar as a contributing factor.
Will the Dollar Index Continue Its Strong Movement?
The dollar index saw downward movement between December 28, 2016, and September 8, 2017.
Fed Rate Liftoff: Not Much Is Likely to Change
So now that the Fed rate liftoff has finally arrived, should you flee to market sidelines? If you can believe history, the answer is an emphatic no.
US Dollar and Oversupply Concerns Pressure Crude Oil Prices
March WTI (West Texas Intermediate) crude oil (ERX) (IEZ) (USO) (PXI) futures contracts fell 1.6% and settled at $52.17 per barrel on February 7, 2017.
Will Volatility Fall this Week?
Stock market volatility around the globe continued to trend lower as uncertainty about German elections, North Korea, and US tax reforms subsided.
Why Equity Markets Continue to Remain Unaffected by the FOMC
The US equity markets (SPY) haven’t seen any major impacts from the Fed’s policies in the recent past.
Must-know: Why the Fed drove up emerging market asset prices
Many economists, like the Nobel Prize–winning Paul Krugman, believe that the Fed acted as a “white knight” in 2008, saving the global economy in the dire aftermath of the financial crisis.
What Are Jeffrey Gundlach’s Views on Gold and the US Dollar?
Gundlach also had something to say about assets other than bonds and stocks like gold (GLD) and the US dollar (UUP).
Dollar Appreciation Impacts IBM’s Growth in 2Q15
IBM pointed to the strengthening US dollar for the decline in its revenues, which fell by 13.5% in fiscal 2Q15. On a constant currency basis, revenue only declined by 1%.
US Dollar at a 13-Year High: Crude Oil Market’s Turning Point?
The US Dollar Index rose 0.4% to 101.4 on November 18, 2016—the highest level in the last 13 years. It also rose 4% in the last two weeks.
Will Crude Oil Futures Trend Higher after OPEC Meeting?
The American Petroleum Institute will release its crude oil inventory report on Tuesday, December 5, 2017.
Must-know: Benefits of hedged currency investment
When the U.S. dollar appreciates, gains on international equity investments can diminish when converted back into U.S. dollars.
A Look at Groupon’s Marketing Strategy
Groupon (GRPN) is pumping millions of dollars (UUP) into marketing and customer acquisition efforts as it seeks to conquer the North American daily deals market.
Gold Gains on US-Mexico Trade Deal—What’s the Upside?
Gold prices (GLD) recorded their first weekly gain last week after six weeks of continued losses. What changed?
Why the S&P 500 Net Profit Margin May Predict a US Recession
Over a good four decades, the S&P 500’s net profit margin has fallen notably when the economy was on the verge of, or already into, a recession.
British Pound on Downward Slope since Brexit Vote
Since the British Brexit referendum on June 23, 2016, the British pound (FXB) has been nervous.
Why VMware’s Stock Could Rise after Its 2Q16 Results
Despite providing weak guidance for 2016, VMware’s (VMW) 1Q16 results beat analysts’ estimates, which helped its stock to rise by 10% after its results were released.
How the Materials Sector Performed in March
The Materials Select Sector SPDR ETF (XLB), which tracks the performance of the material sector, showed a weaker performance in March 2017.
Will US Crude Oil Futures Be Range Bound This Week?
WTI crude oil (USO) futures hit $58.95 per barrel on November 24, 2017—the highest level in nearly three years.
Will the US Dollar Index Strengthen before the FOMC Statement?
Asian currencies traded lower against the dollar ahead of the FOMC statement. The US dollar-Japanese yen currency pair rose by 0.80% at 6:00 AM EST on July 27.
Inside the US Dollar Index’s Mixed Response in 2017
The US dollar (UUP) (UDN) seemed to show mixed response to the Fed’s rate hike on March 15, as prices have reflected a downtrend so far in 2017.
OPEC and the US Dollar Pressured Crude Oil Prices
The US Dollar Index fell 0.2% to 101.5 on November 25, 2016. However, it hit 102 on November 24, 2016—the highest level in nearly 14 years.
Crude Oil Futures Rose for the Seventh Straight Day
August US crude oil futures contracts rose 2.5% and closed at $46.04 per barrel on June 30. Brent crude oil futures rose and settled at $47.92 per barrel.
Does the Rising US Dollar Index Signify an Upcoming Trend Reversal and Domino Effect?
On June 9, the US dollar index, which measures the strength of the US dollar against a basket of major currencies, ended a three-day loosing streak.
Are Crude Oil Prices on the Verge of Collapsing?
Crude oil prices fell due to the API’s bearish crude oil inventory report. Prices have been trading between $50 per barrel and $54 per barrel since January.
Where Oil Prices Could Head
USCF OPEC’s decision to cut 1.2 mbd has already had a significant price effect, and compliance has already started. Production dropped 3% in December. At the moment, all eyes are on whether OPEC members will comply, and whether returning supply from Libya and Nigeria may offset any cuts OPEC has announced. The bigger wildcard is the U.S. It […]
Crude Oil Futures Near 7-Week High
September US crude oil (RYE) (VDE) (BNO) futures contracts rose 3.3% to $47.8 per barrel on July 25, 2017.
What’s John Schlifske’s Take on the US Dollar?
The negative interest rates in major developed markets (EFA) such as Europe (VGK) (EZU) and Japan (EWJ) (DXJ) make US government debt more attractive.
Crude Oil Prices Rose above the 200-Day Moving Average
WTI (West Texas Intermediate) crude oil (USO) (UCO) (XLE) futures contracts for May delivery rose 2.4% and settled at $49.51 per barrel on March 29, 2017.
Why Did Brent and WTI Crude Oil Prices Diverge?
US crude oil prices rose due to a larger-than-expected draw in US crude oil inventories and record refinery crude oil demand.
What Does Jack Bogle Predict for US Real GDP?
In 4Q16, US (SPY) (QQQ) (IVV) (VFINX) real GDP grew at an annual rate of 1.9% compared to a 3.5% rise in 3Q16.
US Dollar Strengthens after Dry Spell: Can It Continue?
The US dollar (UUP) is gaining strength after a short dry spell.
Stronger Dollar Hampers US Trade Balance; SPY Falls 1.15%
According to the US trade balance report, the US trade deficit widened to $51.37 billion in March against an expected $41.7 billion. March is the largest monthly widening since 1996.
What’s the Outlook for the US Dollar in 2018?
Overall in 2017, the dollar index fell 9.8%.
Will Yellen’s Hawkishness Drive the US Dollar Higher?
The US Dollar Index (UUP) closed at 95.79 with a rise of 0.39% last week. This rise was a welcome relief for the dollar.
Why IMF Is Worried about the US’s Expanding Debt Profile
The US had a budget deficit of $215 billion in February 2018, the largest in six years.
Why Did Crude Oil Prices Hit a 3-Month Low?
Crude oil (USO) (IXC) (XES) was trading near a 20-month high on March 7. US crude oil prices posted their biggest one-day decline in the last 13 months.
How the Dollar Is Affecting Oil
US crude oil (DBO) (USL) (OIIL) July futures rose 5% between May 16 and May 23, 2017.
Is It a Good Time to Look at Gold?
The SPDR Gold Trust ETF (GLD) has fallen ~8.0% year-to-date and ~11.0% from its April peak.
Why Oil’s Rally Is Cooling
Between May 18 and May 25, US crude oil July futures fell 4.9%—the steepest weekly decline since February 9.
Red Hat: 56th Consecutive Quarter of Revenue Growth
Red Hat (RHT), a leading Linux software and open-source provider, was the latest in the technology space to announce its fiscal 4Q16 earnings.
Why the British Pound Rallied Sharply in the Week Ended March 23
The FTSE 100 Index (UKX) fell ~3.4% for the week ended March 23, 2018, and closed at 6,921.94.
The Federal Funds Rate: Why The US Dollar Could Appreciate Further
The federal funds rate is a tool that the Fed uses to control the interest rate in the economy. The rate has been close to zero for over six years.
Euro Reaches 23-Month Peak: Could It Climb Higher?
Euro rallies to a 23-month peak Last week, the euro (FXE) closed at 1.17, appreciating by 1.7% against the US dollar (UUP). The currency has appreciated by more than 10% against the US dollar this year, making it one of the strongest developed market currencies. Improving economic conditions and a stable political climate turned the […]
How Will Cliffs Natural Resources’ Costs Progress in 2017?
In 4Q16, Cliffs’ cash costs of goods sold for APIO was $36.4 per ton, or 8% higher YoY.
Is the US Dollar Contributing to Crude Oil’s Fall?
US crude oil futures contracts for September delivery fell by ~8% between July 26 and August 2. The US Dollar Index fell by about 2.2% over the same period.