US dollar rips as all else pales

Monday, 23 November 2015

The US dollar is off and running again, at a new 2015 high:

It’s just half a cent below a renewed bull market break out. It’s not hard to see why. The euro is flagging badly on political risk arising from terrorism and more dovishness from Mario Draghi on the weekend, the Chinese yuan is sagging, LATAM economies are fading away, Japan is in recession, US GDP is thought to be about to be revised upwards, bond markets are selling and El Nino favours FEd tightening.

The big breakout seems quite possible this week.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.