MARKET OVERVIEW - The economic power of the USA should not be overlooked by currency markets.

Foreks - Win Thin and Elias Haddad from BBH argue that the economic power of the U.S. should not be overlooked by currency markets. “Signs of life in the U.S. economy warrant a reevaluation of the prevailing pessimism,” the economists noted, pointing to the PMI data released yesterday, which indicated a recovery in activities in March.

Thin and Haddad stated, “If the data continues to improve, the fundamentals for a strong USD will come back into fashion, driven by robust growth, high inflation, and a more hawkish Fed.” The WSJ Dollar Index gained 0.2% yesterday before falling by 0.3%. The dollar weakened by 0.2% against the Euro and 0.5% against the Yen.