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Friday, December 29, 2017
US Dollar Weakness - Creepy
The market had expected that passing of the Trump's US Reform Tax will mean the USD will rally more and the US yield curve will steepen further, instead we are seeing a creepy USD weakness and the US yield curve flattening with the US 10 Year treasury yield coming down. The markets are clearly showing scepticism about the long term stimulative effects of Trumponomics trade. This blog base case on the dollar index is that sooner rather than later to test will test its 3 year low at 91.0, This will trigger more fund flow to Asia and the emerging markets. This blog remain a bearish on the dollar maintaining a sell into strength until the Dollar Index hit 0.91.
at 5:46:00 PM