28th January 2015
The US dollar’s rising trend appears to be unstoppable and is creating speculation that the Federal Reserve will push back the expected interest rate rise from mid-2015 to later in the year, or even perhaps 2016.
It seems that the stronger than expected dollar is beginning to eat into the earnings of large multinational companies, as demand for US produced goods wanes in the face of their rising costs.
Despite Apple reporting its biggest quarterly profits in corporate history, it seems that the strength of the US dollar has been hurting the profits of other companies. Such multinational giants as Microsoft and Procter & Gamble (P&G) have warned their situation will deteriorate if the greenback continues to gain strength.
P&G’s profits fell by 31 per cent due to recent unprecedented currency devaluations while Microsoft’s earnings decreased in line with market expectations. Microsoft’s shares lost around nine per cent on the news while P&G stocks declined over three per cent.
Slumping oil prices are adding to the scepticism over the coming rate rise, as the crash is driving down inflation, while the aggressive monetary easing from other major central banks is adding to the dovish sentiment.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.