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Cudmore Stands By His Call: "The Dollar Is In A Multi-Year Down Trend"

• https://www.zerohedge.com, Tyler Durden

Back in October, Cudmore projected that the rise in the US dollar still had room to run as a shift in Chinese monetary policy (keep in mind this was months before the rumors about China cutting back on purchases of US debt emerged) would cause Treasury yields to climb, dragging the US dollar higher. The dollar finished the year on an upswing, but has slumped in recent weeks, ignoring the bounce in Treasury yields.

Treasury yields finished last week at their highest levels in years, but the dollar index slipped to its weakest level since late the final days of 2014. 

Cudmore started by contrasting the consensus view heading into 2017 with the view heading into this year: Early last year, markets were dominated by the expectation that the US would lead a global reflation trade - but, as things turned out, the US wound up in the middle of the pack in terms of growth and inflation in terms of the G-10 economies.

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