Good morning – its Wednesday March 16th, the 75th day of 2005.
The top news for this morning is a record US Trade Deficit, hitting $187.9 billion. Forex traders in many currencies have largely or completely erased any gains the greenback made yesterday.
``It’s a reminder of how large the financing requirement is and how long it will take to get that requirement down to more manageable proportions,’’ Nick Bennenbroek, a currency strategist at Brown Brothers Harriman & Co. in New York, said before the report. ``The dollar seems to be fragile.’’
Betting against the dollar paid off for Berkshire Hathaway Inc. Chairman Warren Buffett. Berkshire posted a 40 percent increase in fourth-quarter profit because Buffett increased his bet the currency would weaken. Berkshire had $21.4 billion of forward contracts, or agreements to purchase foreign currencies on future date at a certain exchange rate.
Buffett, 74, said earlier this month he expects the U.S.‘s widening trade and budget deficits to erode the value of the dollar for the next few years. [1]
US Market Calendar
- 7:00 am: MBA Purchase Applications
- 8:30 am: Current Account – Q41
- 8:30 am: Housing Starts – Feb.
- 8:30 am: Building Permits – Feb.
- 9:15 am: Industrial Production – Feb.
- 9:15 am: Capacity Utilization – Feb.
- 10:30 am: EIA Weekly Petroleum Status Report
Canadian Market Calendar
- 2-year bond auction
Earnings and the Federal Reserve
For earnings highlights, please see today's WSJ Earnings Calendar.
For a list of upcoming speeches, congressional testimony, Federal Open Market Committee material, and statistical releases, please visit the What's Next page of The Federal Reserve Board website. Recently released Federal Reserve Board material, including market moving FOMC decisions and speeches by members, will be found on their What's New page.
1 Dollar Falls After Current-Account Gap Grows More Than Forecast
05.03.16 09:18 #