It's good for the U.S. to see a relatively weaker dollar, but it's not a good idea for the U.S. Treasury to signal it wants a weaker dollar. The decline in the U.S. currency could be faster than they wish.

The rise in the dollar is likely to be limited to maybe a maximum of 3 to 5 percent.

Those who expect further rate hikes can note that the real Fed Funds rate has yet to reach at least 3 percent, ... But with oil prices rising 58 percent since last June (when rates started to rise) and with U.S. manufacturing nearing contraction, the bond market is telling the Fed that it had better not raise rates further.

Industrial output does show we are still in a slowdown, but it does show we may be nearing the bottom of a slowdown, ... We are still not out of woods yet. January was a slow month, but we could see some brightening of prospects after the first half of this year.

Industrial output does show we are still in a slowdown, but it does show we may be nearing the bottom of a slowdown. We are still not out of woods yet. January was a slow month, but we could see some brightening of prospects after the first half of this year.

Now that the Fed's tightening is expected to carry well into first quarter, currency markets could prove rewarding to the dollar ahead of the December meeting, ... We still stand by our call expecting the dollar to reach a short-term bottom at $1.36 by year-end.