Friday, December 23, 2016

Dollar's Jump To Boost EU And Japan's Next Inflation Reports

See Full Report

*The dollar jumped 4% versus the Euro in November and 9% versus the yen. Both inflation numbers are going to report soon.

*These moves elevate import prices to the EU and Japan driving inflation higher.

*Inflation is 6-12 months away from hitting central banks' 2% target. At that time, they will need to reverse course from this record-easing period.

*We're not there yet but when we arrive there, markets have material risk.

How Fast Will Inflation Jump In One Month Due To The Dollar?
The dollar was up about 4% in November versus the euro (NYSEARCA:FXE).
14% of EU's imports are from the US. 40% of EU's GDP is made up of imports.
Now let's do the math.
EU: 4% dollar move X 40% imports X 14% of those imports from the US = .2% move.
In one month, the dollar alone drives EU inflation .2% sequentially. That would be an acceleration from the previous month from the dollar alone.
Source: Trading Economics

See Full Report


  • Real time, signals, coaching, direction, analysis on the stock market, gold, oil, bonds, currencies, indexes and more.
  • If our above report was helpful click here for a free trial of Elazar's Pro Trader service on Seeking Alpha.
If you want Elazar's analysis on Seeking Alpha, scroll to the top of the article and hit "Follow." Elazar also writes real-time pieces as news is reported. If you want to be among the first updated check the box for "Real-time alerts on this author" under "Follow."

Disclaimer: All investments have many risks and can lose principal in the short and long term. This article is for information purposes only. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC and their related parties harmless. Any trading strategy can lose money and any investor should understand the risks.

#in, $spy, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD ELAZAR ADVISORS, LLC AND ITS RELATED PARTIES HARMLESS