Strong dollar certainly has hit global economy: investors are calling off their bids, businesses are likely rumpling up while companies are opting job-cuts strategy. Google Finance reported U.S. stock index futures to be TRADING bullish while Dollar was slightly weaker against a basket of currencies. Prices for U.S. Treasury debt had fallen.
Last week estimates revealed an unexpected increase in unemployment figures but had remained on stable level as per steady labor market.
THURSDAY: Today’s data has shown a bearish output of December import cost scale for a sixth straight month – reason behind might be falling petroleum cost aside with strengthening Dollar affecting all Dollar-dominated commodities.
As per U.S Labor Department’s report on 9th January 2016, the initial claim for unemployment benefits increased 7,000 to a seasonally adjusted 284,000 by the week-end. That was the 45th consecutive week claiming to be lower than 300,000 mark. In another report, the department stated that for an annual scale 2015, import prices fell 8.2% – the largest calendar year decrement since year 2008. Last month, imported petroleum price was bearish with 10% — the biggest fall since August after sliding 3.6% in November. Other than that, the import prices had slipped 0.4% after falling 0.3% in November. A report insight further reveals export prices to have fallen 6.5% in year 2015 — the largest calendar-year drop since the index was first published in year 1983. Other than that, the export prices had slipped 1.1% last month after sliding 0.7% in November.
Not to mention, with continuation of bullish dollar against major currencies and plunging crude costs — at 12-year lows — inflation is possibly be milder for time being. Economists say weak inflation together with slow domestic and global growth could awake Federal Reserves for an interest hike in March policy meeting.
