Exchange value of the U.S. dollar

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Recently a rise in the exchange value of the U.S. dollar vs. its other trading partners has signaled economic weakness & not traditional economic strength. But has the tide changed for the 1st qtr?

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research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=DTWEXM&s[1][range]=5yrs

Did conditions just change?  1st qtr gDp higher -- but all of the sudden plateaued? Rates to fall?

research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=DTWEXM&s[1][range]=1yr

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bit.ly/pao39W[1][id]=DTWEXM&s[1...

Has the tide now turned to economic strength? Or did conditions just change? 1st qtr gDp higher -- but all of the sudden plateaued? Rates to fall?

2013-03-01 76.0724
2013-03-04 76.0545
2013-03-05 75.9648
2013-03-06 76.1530
2013-03-07 76.0459
2013-03-08 76.4399
2013-03-11 76.3867
2013-03-12 76.3071
2013-03-13 76.5166 associated with turn in rates?
2013-03-14 76.3996
2013-03-15 75.8412

No pressure from bank squaring day: Daily Fed Funds Effective Rate: 0.15 percent (Low 0.090%, High 0.3125%) with 4 basis points of standard deviation

 

NYT: “We need to see sustained improvement,” the Fed’s chairman, Ben S. Bernanke, said on Wednesday. “One or two months doesn’t cut it. So we’re just going to have to keep providing support for the economy and see how things evolve.”

The Fed separately released economic forecasts by 19 of its senior officials showing that their expectations had actually soured slightly. They predicted growth of 2.3 percent to 2.8 percent this year, down from a forecast in December of 2.3 percent to 3 percent
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Reuters: "The Fed will buy between $1.25 billion and $1.75 billion in
bonds due 2036 and 2043 on Thursday as part of its ongoing bond
purchase program"
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One U.S. Treasury bond having a face value at maturity of $100,000.

bit.ly/102ktCg
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One three-month (13-week) U.S. Treasury bill having a face value at maturity of $1,000,000.

bit.ly/WMKEPT
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Interest on Fed Funds having a face value of $5,000,000 for one month calculated on a 30-day basis at a rate equal to the average overnight Fed Funds rate for the contract month.

bit.ly/102ktCi
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Eurodollar Time Deposit having a principal value of USD $1,000,000 with a three-month maturity.

bit.ly/y6KMOS

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