Via Soc Gen:
Familiar FX/rate/volatility correlations are failing as the global economy moves out of the post-financial-crisis phase of absurdly cheap money.
- The combination of rising US yields, rising equities and a falling dollar reflects a more synchronised global recovery that is luring money away from the dollar, something we last saw for a sustained period in 2004-2007.
- What started then as optimism about the global recovery after the Asian crisis ended, of course, in hype, hubris and excess. Hopefully, we’ll not get to that stage again.
