The Federal Reserve seems to want to ignore the potential global fall-out as they start on a path of raising interest rates while the rest of the globe seems to be slipping back into the economic abyss.
The dollar extended its streak of declines to the longest since April as economists forecast reports this week will show slowing factory output and a smaller gain in new home sales in the world’s largest economy.
We start the New Year with the U.S. better supplied with oil than at any time in history. Now the market will focus on the demand side as we start the slow road back to normal markets after the extended holiday trade.
Global stocks fell, trimming the biggest quarterly gain since the start of 2012, before a potential U.S. government shutdown. Treasuries and the yen reversed early gains while crude oil traded near its lowest level in three months.
The dollar rose against most major peers amid demand for safety as euro-area services and manufacturing output contracted and the U.S. prepared to issue a report forecast to show the unemployment rate rose.