King Dollar
The DXY range
Schoolbook example of how a range looks like. Extremely complex psychology is developed in longer term ranges such as this one. The dollar should take a pause, but be very quick to reassess should the DXY break above the mighty range. Most have learnt to sell/short range highs...
Source: Refinitiv
The dollar long
Investors puked the dollar at the range lows we saw not long ago, and are very long it at range highs.
Source: DB
Trump effect
The bid in the dollar and the BTC started ahead of Trump winning the election. It seems like there is more to this story than just simply the Trump win argument...Both showing a flight to safety?
Source: Refinitiv
Euro and the range
Another way to see just how mean reverting the euro has been over the past 2 years.
Source: UBS
Could fall more
The euro could fall more when looking at nominal yields, but real yields show it has already fallen too much.
Source: UBS
The dollar & inflation
The Dollar has become more positively correlated with US 2y inflation.
