Greenback’s strong week shows how dangerous it can be to bet against it
The dollar just had its best week in two years, showing once again how dangerous it can be to bet against the U.S. currency if the rest of the world just won’t let it drop.
The main catalyst for the renewed dollar strength was the clear signals coming from central banks in Europe and Japan that any efforts by the Fed to up the ante on rate cuts would be matched in kind. While the Bank of Japan had been moving in the opposite direction, both the BoJ and the country’s new prime minister threw cold water on plans to further ‘normalize’ policy with higher rates following the Fed’s large cut.
Societe Generale’s currency strategist Kit Juckes this week puzzled over why the dollar is rising again so shortly after the Fed has started cutting rates. He noted that the two previous multi-year dollar rallies over the past 50 years were completely reversed after Fed easing commenced. SocGen strategist Juckes highlighted that foreign investors had increased their net holdings of U.S. assets by a “staggering” $40 trillion since 2020 - making it all the more remarkable that this thirst hasn’t yet been slaked.
U.S. mutual fund numbers have seen net outflows from global equities over the last month, a fairly consistent trend since the Fed began raising interest rates in March 2022.
Canada News Breaking News Video Canadian Breaking News Breaking News Globe And Mail Breaking News Globe And Mail Canada News Photos World News Local News National News Us News Foreign News Sports News Arts News Life News Lifestyle Canada Traffic Canada Weather Trudeau Government Federal Government Canada Sports Canada Sports News Politics Politics News Political News Political Opinion Environment Economy Technology Education Travel Canada Alberta Bc British Columbia Manitoba Ontario Quebec Nova Scotia Pei New Brunswick Newfoundland And Labrador Nunavut Northwest Territories Yukon Globe And Mail
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SUNDOG up by +9% after Ty Dolla’s whale purchase – More gains for memecoin coming?SUNDOG's surge amidst memecoin turmoil surprised investors, igniting celebrity chatter about market manipulation and community hope...
Read more »
World waits with bated breath as we teeter on the edge of a world warThe Hill Times
Read more »
Guterres tells UN meeting that impunity, inequality and other challenges risk engulfing the worldUN boss tells 193 member nations geopolitical divisions are deepening, the planet is heating and wars are raging
Read more »
Ottawa bantamweight Liam Macfadyen no stranger to world of combat sportsTORONTO — Liam (The Celtic Samurai) Macfadyen grew up in combat sports, surrounded by black belts, Olympians and Hall of Famers.
Read more »
'A cause for concern': Canadian universities slip down world ranking listAn organization that ranks the best universities across the globe says its latest report shows a concerning trend that several of Canada’s institutions are slipping down its list.
Read more »
Why Fed rate cuts matter to world marketsWhen the Federal Reserve delivers a widely-anticipated interest rate cut on Wednesday, its first in four years, the move will resonate well beyond the United...
Read more »