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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EQUITIES
While the US economy is relatively insulated as a whole from the impact of a stronger dollar, currency strength is having a significant impact on corporate earnings. See our note earlier today on US firms flagging USD impact on Q3 earnings (including consumer products giants P&G and J&J today).
- An estimated 30% of S&P 500 revenue is generated from abroad, and that is impacted negatively by dollar strength via the lower USD value of foreign currency-denominated profits, as well as through weaker exports.
- The accompanying chart shows the net % of companies issuing net upward or downward revisions to their earnings guidance, plotted against the US dollar's strength.
- Dollar weakness has at times been a tailwind to US corporates, but looks to be a headwind for the foreseeable future.
Source: Fed, BBG, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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