empty
 
 

2016.10.1806:44:00UTC+00Us Corporate Earnings in Third Quarter Continue to Mourn Strong Dollar

Having bad earnings report? Well, just blame it on the dollar. Strangely according to the figure by Bloomberg, 60 percent of the corporate America blamed the strong dollar for the disappointment in the earnings report. While it is understandable that any company having cash flows coming from the Great Britain is having a bad time (the pound plummeted against the dollar after EU-referendum), for other currencies, the dollar is not really at any unprecedented levels. The dollar index, which is the value of the dollar against a basket of currencies) is currently trading at 97.65. As a matter of fact, the dollar is hovering around these levels since last year. The dollar is up just by a little more than 2 percent this year so far. Even if the companies believed that the dollar could be a problem, they could have hedged their exposure.

We at FxWirePro believe that the dollar is being used as a punching bag by corporate America. Some of the other issues highlighted are higher wages, lower energy prices, Brexit, US election, higher rates (really?) and the weakness in China.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback