1.U.S. Dollar Big Move Up in April….U.S. Rates Still the Highest in World.
Equities
The stock rally paused on Wednesday, pressured by the rising US dollar. Outside of the trade-related uncertainties, the dollar now poses the highest risk to equities. A firmer dollar tends to make US products more expensive for customers abroad and depreciates the value of foreign earnings for US companies. Imported products in the US become cheaper, making it harder for domestic firms to compete.
Weak economic data out of Germany (see the Eurozone section) and a more dovish Bank of Canada (Canada section) boosted the dollar on Wednesday. Rate differentials with other economies will provide tailwinds for the dollar over the long run.
Source: Morgan Stanley Research
The Daily Shot
https://blogs.wsj.com/dailyshot/2019/04/25/the-daily-shot-a-stronger-dollar-could-hinder-the-market-rally/