QQQ - A Stronger Dollar May Drive The S&P 500 Much Lower

2024-04-14 06:30:00 ET

Summary

• The US CPI report and ECB policy meeting highlight divergent paths for the Fed and ECB, driving further dollar strength.
• Widening spreads between central banks and interest rates could send the euro lower and impact other currency pairs.
• The strong dollar will affect financial conditions, earnings estimates for multinational companies, and lead to a contraction in the S&P 500's PE ratio.

This week's US CPI report and Thursday's ECB policy meeting highlight the different paths the Fed and the ECB will likely take going forward. Those differences will likely drive further dollar strength versus the euro and other major currency pairs....

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