In likely the most pointed, direct message given to the US government in a while on the direction of the US$, ECB Pres Trichet said yesterday, “It is extremely important that the US authorities, including the Treasury, the Secretary of the Treasury and the chairman of the Fed would pursue policies that take into account the fact that a strong dollar is in the interest of the US.” He’s basically telling us that the burden of having the reserve currency of the whole wide world deserves better behavior and we better start acting more responsibly as the policies currently pursued that is resulting in the “excess volatility” of the US$ “is an enemy from the standpoint of the stability and prosperity of the global economy.” My updated earnings scorecard has 86% of companies beating EPS estimates with only 57% exceeding revenue forecasts. IP, consumer confidence and TIC data are all out today.
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