|Yen continues to climb||Yellen and Obama meet|
|Oil is rising||Dollar continues to fall|
The yen continues its relentless march upward, causing concern for those that guide monetary policy in Japan. The USD/JPY is heading down into the 107s, levels not seen since October 2014. This movement has the Bank of Japan getting nervous, leading to widespread belief that more stimulus is necessary to bring it back down.
The widespread weakening of the U.S. dollar shows no sign of slowing amid lessened demand for dollars in the reserves of central banks. While this is good news for U.S. companies’ international profits, it also speaks to some uncertainty about what the Fed will be able to accomplish in 2016. There seems to be some discord between hawkish FOMC members and the dovish chair, Janet Yellen. The Chairwoman will be meeting with President Obama to discuss the American economy today.
The dollar’s weakness has led to rising commodity prices, particularly for gold and oil futures. Will dollar weakness finally lead to the sustained rally in crude oil prices many have been calling for?
EURUSD: Euro is up on dollar weakness.
GBPUSD: Sterling is up over a percent, rebounding after recent weakness.
AUDUSD: Aussie dollar is up with commodity prices.
USDCAD: Canadian dollar is rising with oil.