German export drops and European worries
Saturday, October 11th, 2014
There is still much uncertainty in global markets, with jitters in Europe having an effect on the US dollar.
A recent 5.8 per cent drop in German exports coupled with a downward revision of growth forecasts for the country has had a negative knock-on effect on the dollar, owing to the potential for a weak US export market.
Although the dollar has largely retraced earlier losses, investors are still dovish, with the federal reserve bank keeping interest rates low. The recent meeting of the fed also raised concerns about how a strong dollar may further affect US exports.
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