Can Europe's Economy Handle Russian Sanctions? | Frances Coppola
Forward Guidance
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The Dollar Explodes Higher in 2014
The dollar is exploded higher. I think a lot of that is because the two biggest components of the US dollar index, the DXY, the euro and the yen, both of those central banks have indicated they're extremely unwilling to tighten monetary conditions to respond to inflation. So it's tiny so the dollars don't go up. The other big component of it, of course, is oil. The dollar does respond to the oil price. So that also tends to drive up the dollar too. If it's oil, then I would expect the dollar to start coming down really. But I agree with you about the conflicting monetary policy signals would tend to driving up the dollar.
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