DXY held on last night.
AUD the reverse. Still trending higher.
Lead boots going nowhere.
OIl and gold sank.
Metals no byueno.
Junk worried.
Yild relief.
Yield relief.
Could not save stocks.
It’s a day-by-day proposition right now, but I think TS Lombrd probably has the trend right.
America is not about to lose its reserve currency status, but we are seeing some decay to the dollar system as geopolitical allegiances, trading patterns and investment incentives shift.
The US has chosen this path even if there is no clear evidence of an “exorbitant burden”.
The market implications are clear:structural dollar weakness and the end of US exceptionalism.
I would go quite so far given US leadership in emerging technologies but, yes, the direction is down as Trump undermines US moneyness.
Australian dollar to slowly climb above 70 cents in the next year.
