http://www.atimes.com/http://www.atimes.com/atimes/Global_Economy/GG15Dj01.htmlDaily Forex Commentary
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And strong inflation news would do much to put the market back in the aggressive Fed camp - possibly adding again to the already growing yield differential argument favoring the dollar. We don't want to play the guessing game on the number - but we do believe despite Thursday's CPI and Friday's PPI release, over the longer term we are staring into a deflationary abyss globally.
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Maybe we get a surprise on inflation this month - and maybe the dollar rallies - or maybe it doesn't. We seem to be in one of those zones whereby even if you guess the number right, you could be very wrong on the market reaction. But, given the US economy will probably be the last bastion of some growth relative to its competitors, should creeping global deflationary pressure rise, as we suspect, the dollar would seem to be the beneficiary over time.
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"deflationary abyss"
global warming abyss
peak oil abyss
health care abyss
abyss: deep, immeasurable space; profound, unfathomable; infernal regions: hell