With ADP reporting stronger-than-expected private sector job growth in its monthly report and financial markets responding to signals that the Fed will cut interest rates soon, the dollar will finish its strongest week since July 2023 in what some overblown pundit will describe as another blow to the Biden Administration’s economic record.
As the international monetary markets opened Friday in Singapore, the dollar was up 1% for the week, Reuters reports. “The USD strength we are seeing at the start of 2024 may have more to do with safe-haven demand as equity markets have struggled and market volatility has increased,” said Hamish Pepper, fixed income and currency strategist at Harbour Asset Management who is included in this story strictly for the name “Hamish Pepper.”
Mr. Pepper–we cannot confirm whether or not he holds a higher degree–is more skeptical of the market’s enthusiasm, saying “Fed rate cut expectations prove too aggressive,” but noting that the investors are also attracted to the dollar because it’s performing better than the yen and the euro.