Sentinel 1973 – Comments on Weakening Dollar

AUCKLAND, NEW ZEALAND / ACCESSWIRE / October 23, 2017 / The US Dollar Index, which measures the strength of the American currency against other world currencies, has fallen 10% since January, having peaked after Trump’s presidential victory. But, although US tourists visiting Europe will find the dollar buys less euro, analysts at Sentinel 1973 highlight the many advantages for the US economy from a weak dollar. While promises of tax cuts, infrastructure investment and deregulation caused the dollar to hit a 13 year high in November 2016, it has since fallen to a 15 month low this August. Some of this can be attributed to the value of the euro, which has strengthened in recent months due to the economic rebound in Europe.

Over the past two and a half years, the dollar has traded between 1.05 and 1.15 against the euro, but it has now broken out of that range and many strategists believe that there could be little resistance to further weakening. However, as the analysts at Sentinel 1973 point out, there are benefits to be had from a weak US currency. US companies are able to gain a competitive advantage in foreign markets as their goods become cheaper. When the dollar is high, corporate profits fall, as US products are more expensive overseas. This, in turn, affects the big US financial markets, such as the Dow index. Most companies listed on the Dow have greater interests in overseas markets where they do most of their trade. As the price of US products falls in those markets due to the weak dollar, those companies become more competitive. Sales and profits rise, as does the stock. This is evident from the best performing stocks of this year: Visa, Apple and Boeing. Analysts at the firm say this is one reason the Dow has risen faster than other indexes, such as the Russell 2000, with its focus more on smaller companies that rely more on domestic sales.

The broker points out that these rising stock prices means bigger returns for investors that use the company’s tools to identify the best opportunities. Increased demand from China, for example, for industrial metals, such copper and iron ore suggests that this is one sector with upside potential, while further weakness in the dollar should see the price of crude oil rise also, which, in turn, should be good news for those clients investing in energy stocks. Emerging markets are another buoyant sector for investors, as stronger currencies, relative to the dollar, should also control local inflation.

Sentinel 1973 was formed in Auckland, New Zealand, and is one of the first broking companies to open up the foreign exchange (Forex) market to private investors. Specializing in CFDs (Contracts For Difference) on stocks, indexes, currencies and commodities, the company utilizes 10 high-tech platforms and 200 financial instruments, along with a team of professional financial experts, to identify superior trading opportunities and protect the investments of clients in 180 countries. The firm organizes seminars and educational events for clients in cities around the world on a regular basis.

Sentinel 1973 – World Leading Trading Broker Chosen by Customers: http://sentinel1973news.com
Sentinel 1973 Explains the Keys to Investing During Uncertain Times: https://finance.yahoo.com/news/sentinel-1973-explains-keys-investing-003000458.html
Sentinel 1973 on the Investing Trend that Has Caught on in Asian Markets: https://finance.yahoo.com/news/sentinel-1973-investing-trend-caught-161800763.html

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SOURCE: Sentinel 1973

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