The Federal Reserve knows how a weaker U.S. dollar helps U.S. exports. Any threat to U.S. exports — a strengthening U.S. dollar — could hurt exports, in turn hurting the U.S. economy, which could hurt jobs.
In the May WASDE global ending stocks are projected to be at 186.4 million tons, up 6.2 million tons from last year. The 51.2 million ton increase in foreign production will more than offset the lower forecast production in the U.S.
Sugar prices are in a free fall now at prices we have not seen since July 2010. A major reason for last week’s drop was that it was reported the output nearly tripled in April at the main growing area of Brazil.
Many are saying the yen dropped down too fast, but what exactly was the response the BOJ was looking for? How many of you recall a month or so ago the G7 saying countries need to stop using monetary policy to manipulate their currency?