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IPFS News Link • Economy - Economics USA

RBC: "We Are Seeing A Complete Breakdown In The Model"

• http://www.zerohedge.com, by Tyler Durden

As he details today, long story short - the current (ongoing) breakdown in the USD is representative / driving some short-term and nascent deleveraging of legacy 'reflation' trades, with DXY through the psychological 100 level and the Bloomberg Dollar Index gapping to new YTD lows, through the 61.8% Fibo retracement level of the post-election rally:

The 'USD short' case is now tactically 'en vogue' as per the sudden-death of the central bank "policy divergence" story last week--which had been the primary Dollar bull-case driver over the past year. With central banks synchronizing their tightening messages (recall Fed hike, PBoC increasing 7-, 14- and 28- day rev repo rates and ECB hawkish commentary all in the same 24 hr period last week) the Dollar's unilateral ascent has at the very least been paused, if not reset.


thelibertyadvisor.com/declare