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Wednesday, April 20, 2005

Gotta Love the Markets

I don't know how much comes from players in the markets and how much from the "say something all the time" financial media, but some of the explanations for market moves are bizarre, to say the least. Earlier today a consumer prices report showed signs that there is more inflation than expected--in other words, the dollar is weakening. But, according to CBS MarketWatch:
The dollar advanced after an unexpectedly strong March consumer prices report stoked dollar proponents' hopes that the Federal Reserve could switch to a more hawkish interest rates policy.
That is, the dollar was rising because it was falling. That has since changed, since crude oil and gasoline are getting tight again. Gasoline futures, after having dropped about a quarter per gallon over the past week, have regained about 8 cents in just the last day. And oil, after having flirted with sub-$50 prices, is now solidly back above $52. (See, I can write like a financial reporter too!)