How Will the Dollar Impact Q2 Earnings?

Jul 5, 2009
 

by: Kathy Lien July 05, 2009 | about: U.S. traders are off for the July 4 th holiday which means that we should have quiet trading in the forex markets. When they return on Monday, the focus will shift to earnings season as investors look for signs of improving profits to offset the pessimism following Thursday’s non-farm payrolls report. Therefore we take this opportunity to talk about the impact of currency fluctuations on second quarter profits. Many equity analysts believe that Q2 earnings will be stronger for the non-financial sectors because of cost cutting, the rally in equity markets, the improvement in consumer confidence, government stimulus programs and the slower pace of contraction in manufacturing indices. However, we believe that the weakness of the U.S. dollar has also played a large role in corporate... [read full story]                    

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