The dollar IS the story; Gold confounds, Brexit rabbit hole; EUR punished
- The dollar IS the story
- EUR punished for negative yields
- Chasing Brexit down a rabbit hole
- Gold confounds
- Bitcoin at an interesting juncture
The dollar IS the story
The story in global financial markets is dollar strength. We can come up with rationalisations, but the point is that dollar strength is driving developments in other markets. Dollar strength appears to be contributing to lower US and global bond yields, curve flattening, topping in global equities and commodity prices, and some recent widening in credit spreads.
Whereas we often turn to developments in global rates, equities and commodities to infer some direction in FX markets, in recent weeks the dollar appears to be in the driver’s seat.
The fact that the dollar has strengthened despite the dovish turn at the Fed this year and the significant fall in US rates and bond yields has confounded many analysts.
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