Wyn Thomas - Axys Investment Management

Weekly Market Update 13th March 2015

EUROPEAN BANKS FAIL STRESS TESTS AS US POWERS AHEAD The contrasting fortunes of the US and Europe have been generating the most headlines this week. The gain in the dollar and fall of the Euro highlighting their respective situations. Ironically the US’ strength could be its undoing, while Europe’s weakness its salvation. International trade tends to be selfregulating, the exchange rate movement is making Europe more competitive and has already begun to hurt the earnings of the largest American companies. The contractionary impact of a strong dollar might delay the need for a US rate rise, the very thing that has been pushing the dollar higher. Read more…..