Interestingly, the real interest rate differential in favor of the dollar peaked in May of this year and has dropped sharply since:
#dxy #g4 #dollar #interestrates
Similarly, terms of trade in favor of the dollar peaked in June of this year:
The dollar is currently significantly overvalued:
With every other G10 currency undervalued relative to the dollar:
At this stage, dollar likely primarily driven by ongoing global growth slowdown:
Perhaps to peak around the time that credit spreads peak:
And if/when Fed swap line uptake jumps:
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