Global Perspectives: The Stable Dollar Amid Tumultuous Headlines

Weekly commentary on international finance and economics including global events and how world issues affect our domestic issues.

The Stable Dollar Amid Tumultuous Headlines Share this story: February has started out with a lot of noise in the markets. Equity markets around the world have continued a bull run after a disastrous few months to close 2018. Our favorite indicator — the U.S. dollar — seems to have been in the shadow compared to everything else that is going on. The most widely watched, trade-weighted dollar index – DXY – has slowly risen each day this month and is back at levels we last saw towards the end of 2018. The story of the dollar reflects what we have been discussing in the whole global economy. While the dollar's drop in January followed market repricing of expectations of short-term interest rates in the U.S. (such as the seeming disappearance of rate hikes and hushed whispers of possible rate cuts), the rise in the dollar's value in February is also due to other major economies being revealed as weaker than previously expected. Interestingly, the dollar has performed better against developed market currencies than emerging market currencies, reflecting the divergent performance in growth momentum. Developed market economies outside of the U.S. have come out with their own dovish tones as they face aging economies, immigrant issues and geopolitical uncertainties putting a halt on economic growth. WATCH THE VIDEO If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133. Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos! Follow City National Bank on social media: Investment and Insurance Products: • Are Not insured by the FDIC or any other federal government agency • Are Not deposits of or guaranteed by a Bank or any Bank Affiliate • May Lose Value This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. The Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting. Unsubscribe from this list  |  Update email preferences This message has been sent to bank@banking.offers.report. Please do not reply to this email. To ensure the delivery of future emails, please add foreignexchange@emails.cnb.com to your email address book or safe sender list. Copyright ©2019 City National Bank – All Rights Reserved. 350 South Grand Avenue, 12th Floor, Los Angeles, CA 90071 City National Bank is a subsidiary of Royal Bank of Canada. TERMS & CONDITIONS  |  PRIVACY STATEMENT NMLSR ID# 536994 | City National Bank Member FDIC