|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||23.40 - 23.47|
|52 Week Range||23.09 - 26.16|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.76%|
The dollar index is very sensitive to interest rate decisions or any change in the key interest rate. A stronger dollar signifies that the economy is doing well. When the interest rate rises or the central bank starts to tighten its credit availability, the dollar index strengthens as the demand for dollar increases in the economy. On March 21, 2018, the dollar index fell 0.65% in spite of a 25-basis-point rate hike by the Fed on that day.
President Donald Trump implemented a new round of tariffs on imported Chinese goods. What Happened The Trump administration is imposing up to $60 billion of new tariffs on imported Chinese goods in response ...
The FOMC’s (Federal Open Market Committee) March meeting concluded on Wednesday, March 21, 2018. The Fed decided to increase the federal funds rate by 0.25%. The increase in the interest rate seems to have been completely priced in, but the markets were eagerly awaiting the Fed’s dot plot and summary of economic projections.
In the first policy meeting under new Fed chair Jerome Powell, the FOMC (Federal Open Market Committee) increased the interest rate by 0.25%. It increased the target range of the federal funds rate to 1.5%–1.75%, leaving the monetary policy stance accommodative in its effort to support a strong labor market and for inflation (TIP) to reach a sustained level of 2%. The decision to increase the US interest rate was unanimous with an 8–0 vote.
The Bureau of Labor Statistics released its JOLTS (Job Openings and Labor Turnover Survey) data for January on March 16. According to the report, the total number of job openings on the last day of January was 6.3 million, an impressive increase from the 5.6 million job openings seen in December, and the highest reading since the beginning of the survey in 2000. JOLTS data is collected through a monthly survey of job openings, number of new employees hired, number of employees who have quit or have been asked to leave, and other job separations.
Could Interest Rates Pull Precious Metals Lower? The fall of equities across the globe could have also boosted precious metals. The unrest in the markets (VIXY) could provide a push for gold prices, as gold and silver are famously known as havens that rise during uncertainty.
The Japanese yen (JYN) managed to claw back its losses after the scare about a second round of tariffs hit the global financial markets last week. Japan’s February exports, March manufacturing, and inflation reports are expected this week.
Is a Perfect Storm Brewing for the Week Ahead? The British pound (FXB) appreciated 0.66% against the US dollar (UUP) for the week ending March 16. British equity markets (BWX) were impacted by increased concerns about global trade wars and closed lower last week.
The US Bureau of Labor Statistics reported on Tuesday that consumer prices in the US grew by 0.2% in February after a stellar increase of 0.5% in January. The US dollar (UUP) declined after this report, as a lower rate of inflation could limit the pace of rate hikes from the US Fed. For developed economies, higher interest rates could lead to a higher valued currency. The US dollar (UDN) managed a minor recovery after the initial slump after the inflation (VTIP) report, but the recovery was short-lived as news about President Trump firing the US Secretary of State, Rex Tillerson, hit the wires.
The US Bureau of Labor Statistics reported that US consumer prices increased marginally in February. The year-over-year increase in core inflation (TIP) was reported at 1.8%, unchanged from the January reading. The inflation (VTIP) reading for February was largely in line with expectations, which is easing investor fears about interest rates rising too quickly and impacting the growth rate of equity investments and depressing the value of bonds (BND).
The Japanese yen (JYN) lost out to increased risk appetite thanks to softer-than-expected tariffs and the positive geopolitical development involving US President Donald Trump and North Korea’s Kim Jong Un. Also driving the yen higher were the comments from the Bank of Japan’s governor, Haruhiko Kuroda, who tried to take back his comments about the policy shift toward tightening. For the week ended March 9, the yen (FXY) closed at 106.80 compared to the US dollar (UUP), an appreciation of 0.99%.
The British pound (FXB) appreciated 0.32% against the US dollar (UUP) in the week ended March 9, 2018. The economic data released from the United Kingdom in the week indicated that the UK economy has been accelerating. Uncertainty surrounding Brexit negotiations has dampened the demand for the British pound, especially as we approach the next key Brexit date of March 22, 2018, when the spotlight will move to Brussels, where EU (European Union) leaders will meet to sign a transition Brexit deal.
The ADP February jobs report was published on March 7, 2018. It offered a deeper insight into the employment trends across different sectors in the US employment market. This report is prepared by ADP, a human resource management solutions provider, in collaboration with Moody’s Analytics.