The U.S. dollar was lower against a basket of major currencies on Monday, as investors weighed the implications of a rate hike by the U.S. Federal Reserve in an economy that teeters on the edge of recession.
The central bank is widely expected to raise interest rates by 75 basis points at the conclusion of its policy meeting on Wednesday. A hike of that magnitude would effectively close out pandemic-era support for the economy.
Expectations for a hike of 75 basis points from the Fed stand at about 75%, according to CME’s Fedwatch Tool, with a 25% chance of a 100 basis point hike.
Recent data has shown signs of an economic slowdown while inflation remains stubbornly high, with claims for jobless benefits rising to its highest in eight months last week and regional manufacturing gauges slumping.
Later in the week, investors will also eye the advance reading for second-quarter gross domestic product, which could show negative growth and meet a traditional definition of recession.
U.S. equities gave up early gains with a slew of corporate earnings on deck for the week, including those from mega-cap names such as Apple, Microsoft, and Amazon . Investors are eyeing the earnings season for signs of a slowdown in the economy as well as the impact of a strong dollar on profits.
MacDailyNews Take: Apple reports fiscal Q3 2022 earnings on Thursday, July 28th after market close. As usual, we’ll have the results for you as soon as they are available, right around 1:30pm PDT / 4:30pm EDT. The analysts’ consensus calls for Apple to post revenue of $82.6 billion and earnings per share of $1.16.
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Shop The Apple Store at Amazon.
Thanks libturds, you are too stupid to know the damage you have done
Please explain how you came up with such an absurd conclusion from the article.
Oh we know, the MDN Moscow Division plays the same worn out tune regardless of what happens in the big bad world outside your bunker. Then Goeb repeats it for the Pennsylvania Ignoramuses for Trump team.
The dollar remains near a historic high value compared to other currencies, you fools. The extremely loose monetary policy championed by the GOP since 2001 does what again to a currency’s value?
“Then Goeb repeats it for the Pennsylvania Ignoramuses for Trump team.”
Repeats exactly what, Moron? You did not articulate in your drive-by insult road show.
“Pennsylvania Ignoramuses” would that be Democrats who hold a 2-1 voter registration edge in Pennsylvania? Again, you did not articulate in your drive-by insult road show.
Trump Team fully capable of speaking for themselves and The Don’s endorsements winning record over 90% in primary elections this year.
The Tidal Red Wave will sweep away Dem incompetents Nov. 2022 and simply STUN sycophants like you…
Well, I agree that Sam’s conclusion is total nonsense, but, you’re also wrong to compare $ with currencies that ALSO lost 10-20% of their value during the last year.
I think you two should look further into the world that exists outside the United States…
I disagree. There are absolutely reasons to compare currencies directly. Actual currency exchange rates strongly influence trade flows.
If you prefer to examine PPP, which some economists consider a leading indicator of which direction the actual exchange rates will move, then the whimsical Big Mac index is handy. https://www.economist.com/big-mac-index
As you can see, the US dollar in terms of Purchasing Power Parity is the 6th strongest currency in the world today. That is a very good place to be.
The data is plentiful. Those who claim the US dollar is weak or weakening in any meaningful amount in the last 2 years is simply slinging fact-free partisan mud. There are too many of them on this site.
For what it’s worth, China has devalued the Yuan so successfully that it currently is 30.9% cheaper in PPP than the US $. The Vietnam Dong is 42.8% cheaper. The Malaysian Ringgit is 52.4% cheaper. That ought to explain to people why US capitalists continue to outsource to Asia. Yet I don’t hear any politicos proposing that the US should drive down the value of the $ to match the Yuan and eliminate the financial incentive to outsource there, nor do they propose dropping US wages to meet Asian standards either. It’s not clear what the foul mouthed politicos on this site really want.
Get a clue. The US dollar is strong. Not that you would understand macroeconomics.
https://tradingeconomics.com/united-states/currency
Good reference! Proves that the dollar is stronger than at any point in the prior administration…and under the same Fed chairman.
Sam again has no clothes as he throws rocks from his glass hut.
No, cherry picking one data point alone not relating to the full impact of the entire economy is a partisan cheerleader fool’s errand…
Stock market crashing
Economy crashing
Sky high Inflation
Sky high gas
Just the opposite of the last administration
You too fucking stupid to see that??????
Liberal + shit for brains = libturd
Not only the above, but a “strong dollar” may sound great, but it’s hellish for those that expect foreign buyers of their product(s). It also means, liquidity of dollars throughout the World is strained…hampering economic velocity in the World and material stress on those outside the US with dollar debt.
Healthy dollar = good. Hot dollar = good for Americans buying foreign goods/travel, but bad for the rest.
Sucks for Apple, good for people.
Gas prices have fallen over the past couple of weeks. Down more than 50 cents a gallon here in California. And the economy is hardly “crashing.”
But I don’t expect much in the way of reality for someone who still thinks “libturd” is some clever kind of retort. I mean, I COULD call you a right-wing nut job, or a limp-picked Trumptard, but that would be totally juvenile, don’t you agree?
Gas prices dropping a few cents over decades high prices after records lows proves the economy isn’t damaged?????
Libturd” isnt some clever kind of retort, it’s fact. You just proved it again
https://media.patriots.win/post/Bes8QhIby3jd.jpeg
This wouldn’t have happened if Biden didn’t issue stupid EO’s on his first day in office that caused America to go from energy independence, to insane gas prices, to Biden’s continuous whining blaming Putin for his stupidity, to telling gas stations to sell their gas at cost, to telling us we have so called savings that matter while the price of gas is still incredibly higher than under Trump. The absurdity of the career dipshit politicians is astoundingly mind blowing.
America has NEVER been energy independent by CHOICE. All parties, always, have been kissing Saudi ass since WWI.
Jared has even gotten a $2B infusion of Saudi cash for his brand new fund. So get off your “ ‘Mercia first¨ BS and Trumpian gaslight.
He went to the Middle East to suck Saudi dick. And like Biden’s attempt at being a President and world leader, he failed miserably.
Joe Biden did picked up an STD. It’s called “Saudi Pariah”!
Biden should send to Saudi his expert on this matter, Kamala Harris.
As for applecynic, you can lead a Leftist to facts, but you can’t make him think!
Down 50 cents is some sort of remarkable triumph?!? Repeat after me, gas is STILL in RECORD HIGH territory!
IMMATURE Biden revealed his true colors BLAMING high gas prices on everyone else on planet Earth, but NOT himself and his policies. Now they are easing a bit jumps to the microphone to crow gas prices are coming down as result of his economic policies. No, it’s the market, stupid! Talk about an EPIC FAILURE trying to have it both ways.
May 2020 under Trump gas average nationwide: $1.88, locally I paid $1.61 and still have the photo on my iPhone.
Jan. 2021 when Biden took office: $2.34
June 13, 2022 under Biden: $5.11 and depending on where you live state and averages $6-$7+ a gallon.
Can’t blame you desperately seeking one semi-positive data point to cheer Braindead Biden on with records of his own making. Namely, record historical low approval ratings and the WORST president and economy in history.
More importantly selective one, the average person last report is paying $350 more per month for ALL inflation adjusted costs. You neglected to mention that fact.
WriterGuy should concentrate more on ReaderGuy…
Sigh… As you should know (and probably do), oil and gas prices are set globally, and only have so much to do with domestic policy. You are also comparing the cratered oil prices during the pandemic (remember when oil prices went NEGATIVE for a few days due to a worldwide oil glut?) with an oil squeeze due largely to the Ukraine war and the worldwide economic recovery.
And gas prices are only at a record high if you ignore the inflation and the value of a dollar. Gas prices were higher, on average, during both the Obama and Reagan administrations, and 2012, 2008, 1981.
You criticize me for picking data points, when you’re doing much the same thing. We just choose different moments in time. And suggesting that Biden is the worst president or this is the worst economy in history is simply laughable — have you heard of a little thing called the Depression? Or even the banking failures of 2008?
Please do better.
“in an economy that teeters on the edge of recession.”
On news radio just a few minutes ago heard a spokesman for Biden tipped to negative GDP growth numbers to be announced Thursday.
Starts out saying two consecutive quarters of negative GDP growth defines a traditional recession, then FULL SPIN STEAM AHEAD!
Struggling to REDEFINE the definition of a recession, then muddying the water much more complicated and you have to look at blah, blah, blah.
Time and time again, no RESPONSIBILITY from the Biden administration elitists incapable of the truth continue to insult and treat U.S. citizens as FOOLS.
Come Thursday, look out for manipulated numbers and more importantly, we won’t be fooled again!!…
The fed is insane. It’s shocking the system and going to ‘cure’ inflation by destroying demand, ie by destroying the economy. Morons. All these rates hikes should only be .25% per quarter. This is shocking the system. Idiots
Half the economists say the Fed is overreacting. Half of them say the Fed took to long to do anything. Honestly, I think they’re all just guessing, and have no idea how to predict what’s going to happen six days from now, six weeks from now, or six months from now.
Zombie, the inflation monster cannot be halted with baby steps. Anyone who lived through the Volcker years knows that. Back in those halcyon Reaganesque good times that never really existed, in 1980 inflation was 14%. This was driven by a couple things: constrained fuel supply, and Nixon’s leap to expansionary money supply accomplished by eliminating the gold reserve rules. Thus the value of the dollar was far lower than today. Volcker rapidly raised the Fed rate to 20%. It curbed inflation but drove the economy into a 1981 recession, which was also influenced strongly by massive deficit spending on behalf of Reagan. Nevertheless, Reagan reappointed Volcker in 1983, after inflation had eased to 4%.
As much as the non-economist critics have criticized Powell, calling him too timid and too aggressive on alternate days, the system hasn’t been shocked, consumer spending remains robust, the stock market just had its best month since November 2020, and the most overcooked inflationary items (fuel, houses, education) have started to cool, which is exactly the Fed goal.
If you want inflation to end sooner, then hang onto your hat, because there’s a lot more tightening the Fed may choose to do. Volcker did it before, and today a lot of pundits think the hyperinflation of the early 1980’s and two recessions (not counting the one that they set up for G.H.W. Bush) represents an economically wonderful time in US history. By comparison, economic conditions today are like a walk in the park.
Recession today can be avoided if Americans re-learned how to pull themselves up by the bootstraps and became creators again, instead of just debtor consumers. This isn’t a partisan issue, the federal budget and personal budgets are all carrying too much debt and too weak cash flows.
Keep in mind that crises cannot be the fruit of only one and the same administration. Trump also helped to dig the hole…
Define Trump helped to dig the hole which is complete partisan rubbish. Biden’s lack of policies combined with bad policies dug the hole.
Canceled the Keystone Pipeline on Day One of his presidency when his administration started handing out shovels.
Handed out unearned paychecks for sitting home during Covid contributing to inflation and deficits mean absolutely NOTHING to Democrat presidents…
Deficits have been much higher under Republican presidents than Democratic ones. Trump’s giant tax cut for the wealthy is only the most recent example. And, of course, the Keystone pipeline would have done nothing to increase domestic oil supply, since it was simply a cheaper way to get Canadian shale to international buyers.
Correction: Not “deficits” which are yearly budget numbers, substitute NATIONAL DEBT accumulating since 1969.
Obama nearly DOUBLED the national debt in eight years, more than seven presidents COMBINED over a period of 48 years.
I have not seen yearly deficit figures to back up your claim. BOTH party presidents experience surpluses or deficits depending upon the year and taking recession periods into account. The national debt has increased under every president since 1969, but Obama is the undisputed champ of debt. No surprise CNN, The New York Times and NPR did not tell you.
“Trump’s giant tax cut for the wealthy” is a DECEPTIVE partisan talking point. Trump cut taxes for EVERYONE and the people that pay the most taxes, wealthy and big business, basic math the dollar amounts are higher.
NOTE: “In 2019, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined.”
“Keystone pipeline would have done nothing to increase domestic oil supply…”
TOTALLY FALSE: “At peak capacity, the pipeline will deliver 830,000 barrels of oil per day. While the pipeline is initially carried U.S. light crude, it is expected to carry more heavy Canadian oil harvested from tar sands over the next year.”
NOTE: The U.S. uses around 10 million barrels of oil per day.
“Crude oil from the Williston Basin (Bakken) region in Montana and North Dakota, primarily to refineries in the Gulf Coast area”.
“The volume of oil imported into the US from Venezuela dropped in half from 2007 to 2014, as overall Venezuelan exports have dropped, and also as Venezuela seeks to become less dependent on US purchases of its crude oil. The Keystone pipeline is seen as a way to replace imports of heavy oil-sand crude from Venezuela with more reliable Canadian heavy oil.”
“Much of the opposition to the oil sands actually comes from foreign countries such as Nigeria, Venezuela, and Saudi Arabia, all of whom supply oil to the United States and who could be affected if the price of oil drops due to the new availability of oil from the pipeline.” Add opposition from Dim Democrats and their severely uninformed ilk tirelessly repeating the same talking point LIES.
The availability of huge volumes of pipeline oil would have affected oil markets and prices on an epic scale worldwide. But the MEAN GREENS Biden fears, forced his hand and brainless is too stupid to realize both the benefits and consequences, of his Day One executive order.
If you believe every drop of reliable oil running through the pipeline from Montana, North Dakota and Canada would have been sold overseas, well, I have an iconic bridge in Brooklyn to sell you…
Partisan crap is all over the place anyway. People love to be blinded by their own belives. But one thing is a fact for all: what has had a start, will have an end.
“Partisan crap is all over the place anyway.” It’s only “crap” when FALSE and very easy to disprove.
“People love to be blinded by their own belives.” They do? Must be the 30% in polls saying Biden is doing a great job. Well, those people are out of touch with reality and dying to meet just one of them…