Most Currencies Show Strong Gains Versus the Dollar

Below is a chart from Oppenheimer that shows that most currencies have gained against the dollar this year.

Chief Investment Strategist John Stoltzfus notes much of the gains against the dollar can be attributed to the US Federal Reserve’s consideration of the current state of the global economy in setting its current monetary policy.

After the FOMC meeting last week Fed Chair Janet Yellen reiterated that the US central bank will continue to give significant weight to the condition and recovery progress of economies outside of the US.

The Fed has acted much as we had expected it to and reminded us often of the market adage “don’t fight the Fed”.

They said investors should not be surprised if the market pauses sooner than later to seek a catalyst before it moves much higher from present levels. First quarter earnings season unofficially starts in a few weeks when Alcoa presents 1Q results on April 11th after the market close.

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