Market Update

The dollar rose 7.2% for the quarter – its strongest quarterly gain since 2015. It rose 3.2% in September. The dollar is being pushed higher by an aggressive Fed and the relative stability of the U.S. economy. The extreme dollar strength could lead to an unpredictable event. It’s been amazing to see the dollar rally while other central banks are also tightening.

• The dollar is at its highest level since 2005
• The euro is at its lowest since 2002 and the yen is at its weakest since 1998.
• Sterling is at an all-time low vs. the dollar

Economists continue to wonder why the labor market is still so tight even though growth is slowing. It’s possible that labor shortages during the past year have made companies hesitant to lay off workers. There may be fear of a long-term shortage. Job- switchers received an 8.4% increase on average, up from 5.8% at the beginning of the year.

• Jobless claims fell below 200,000 for the first time since May.
• Oil has been dropping despite the looming EU embargo of Russian crude oil that is scheduled to start in December

https://www.marketwatch.com/story/a-rampaging-u-s-dollar-just-booked-its-strongest-quarter-in-at-least-7-years-as-investors-search-for-safety-11664573502?mod=hp_LATEST&adobe_mc=MCMID%3D19941396636925464163986366275160685726%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1664592339

https://www.bloomberg.com/news/articles/2022-09-26/morgan-stanley-s-wilson-says-dollar-surge-tends-to-end-in-crisis?srnd=premium&sref=enCT0jDD

https://www.bloomberg.com/news/articles/2022-09-30/coordinated-intervention-to-tame-dollar-just-a-matter-of-time?srnd=premium&sref=enCT0jDD

https://www.barrons.com/articles/how-low-will-the-stock-market-go-s-p-3300-might-just-be-the-start-51664583948?mod=past_editions

https://www.marketwatch.com/story/oil-lifted-as-traders-weigh-possible-opec-production-cut-11664536781?mod=hp_LATEST&adobe_mc=MCMID%3D19941396636925464163986366275160685726%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1664592617