Watch U.S. Dollar Impact on Inflationary Pressure, Says BAML

Watch the U.S. dollar as a key performance driver of inflationary pressure.

If one frames inflation from the standpoint of being import influenced, as a recent Bank of America Merrill Lynch report does, then correlated forces could come into play. If the U.S. dollar trend continues to move lower in relative value, inflation pressure could rear its head. The positive impact a higher dollar has on keeping consumer prices low could be fading into 2016 and 2017, the bank report predicts, as the low dollar trend could give central bankers what they are after: signs of economic life. Will the Fed believe it when it sees it?

Watch the U.S. dollar and its impact on inflationary...

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