The economists of ENG report that the drastic revaluation of the Fed curve and Bullish US Curve Divestment Hurts Dollar.
The Swiss franc and the Japanese yen will continue to rise
“The first major US financial crisis since 2008 has seen a significant bullish divestment of the US yield curve – which is bearish for the dollar.”
“We have been arguing for some time that bullish divestment would be necessary to send the dollar lower – but we had considered that it would be US disinflation or weak activity data – not a financial crisis – that would be the trigger.” .”
“Hopefully investors will remain cautious this week and continue to preferring CHF and JPY to the dollar. In a way, we are going back to the old periods of risk aversion, when selling the dollar and buying two-year US Treasuries was the key strategy in a crisis.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
