The US Dollar tends to be driven by relative economic growth. As the global reserve currency, when the rest of the world is strengthening, often at a faster pace than the US Economy, it is common for bonds to be issued in US Dollars and then converted to invest abroad driving the US Dollar lower. Another way to see this phenomenon in action is to look at junk bond yields. A falling yield in the US Junk Bond index tends to show a force behind US Dollar weakness whereas rising junk yields tend to ...
Go to Profile
Mark as Read