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-- Eric thank you so much for be -- -- try to get to this whole issue of the dollar in the end as you pointed out as we stopped to talk about the Fed.
Tightening the money people of monetary policy that won't be dollar positive it will stop to rise on that meanwhile the Japanese Central Bank continuing.
To take its course by flooding -- system with money which is weakening the -- so -- -- if anything -- gonna see this this that gap continued to expand.
Yet it brings up a number of factors.
You know -- the -- starts to pull back on asset purchases essentially they're not printing as many dollars in order to do as many purchases as they've been doing so -- -- going to be a positive for the currency that's -- mean treasury yields should move -- a little bit which is positive for dollar again.
And on the other side of the equation you look at the Bank of Japan where they just announced so a large increase their asset purchase program.
And trying to target a 2% inflation -- going two years.
You know we don't know if it's going to be enough they might have to do more so if they expand the pace of purchases there that's gonna effectively -- in the -- to diseases would miss this is crazy.
We've had the Dulles searching the end plunging but we've also had some key currencies.
Breaching technical levels in the last week -- has -- -- of a somewhat of a wild ride and that it has been and one of those currencies is also the Australian dollar where we've seen that actually come below parity.
The Australian dollar was moving in a horizontal channel where -- bouncing around between 101 and 106 and it's now trading below parity and that's because of weakness.
Because there are BA cut interest rates or reserve yet -- Australia.
Chinese data that came out overnight wasn't quite as strong as it was expected so that -- on the -- we'll -- dollars almost.
You know in sync with the exports all of its mineral rich.
Resources to China is that correct it does heavily rely on that because Australian it's the Australian economy isn't exporting nation they have a lot of natural resources.
And that's really what's been helping to keep their economy strong so is that starts to slow down.
It's gonna -- on the Australian dollar and that's one of the reasons why the reserve bank of Australia cut interest rates is because they're concerned about growth.
Not necessarily inflation although it's slightly -- there but it's within our target range.
But they've noted that that recent -- was due to growth that this race to the base is -- going on I mean just in the last.
Week we've -- South Korea cutting their interest rate we've had.
Israel cutting the value of the shekel it's is just seems like everyone's like located candidate -- not -- -- should just jump in.
Yet -- European Central Bank cut rates last week the RBN's either reserve bank of New Zealand said that they're intervening in currency markets because -- currency -- -- -- -- don't you have to use it really hurts your exporters is that right.
Yes so you know the value of the currency is gonna have an impact on exports but more importantly is the health of the global economy and demand yeah so.
Even in Japan you know we're looking at.
-- weakening currency is going to be good for -- exports but at some point that weakens too much that's gonna raise the cost of their imports.
And it could potentially have a negative effect if that weakness doesn't boost their exports as much as it hurts that it costs of imports.
So you know that's -- that's gonna -- it closely more to the I'll look at overall.
What about the old beaten up Euro which.
To me given everything we know -- going on this still to see that level at 129130.
Is US dollar it still seems overvalued to me.
It's been just sort of moving sideways here because the European Central Bank has indicated their willingness to provide support.
With that rate cut they did last week yeah -- with -- consideration of maybe even moving deposit rates and the negative territory that would be a big negative for the Euro.
But the fact that they're willing to support the economy there and that we're seeing some of the financial stresses are being reduced just a little bit yield spreads have come down out that's been sort of helping the Euro stays stable here for now such strong dollar is what -- betting on as we move forward.
It looks like it's the best of the worst and the terms of the first half but that's expression a lot yeah over the last several years -- Eric Gloria thank you so much for -- -- --
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