The U.S. dollar is on a tear, increasing in value against its traditional trading partners as well as against the Chinese renminbi. A combination of factors is fueling the surge, including rising interest rate differentials, a global move to the safe haven of the dollar and an escalation of ... READ MORE >
dollar
Forecasting the dollar in a post-pandemic world
The probability of the economy and financial markets returning to their pre-pandemic state is quite low. Nowhere is this more evident than in trying to estimate valuations of the U.S. dollar. Despite the robust rebound in consumer demand, a sluggish external sector and pandemic-induced economic ... READ MORE >
CHART OF THE DAY: The strengthening dollar as the recovery takes hold
U.S. commercial activity is reflating back toward pre-pandemic levels. The recovery is showing up in the high frequency data and in an array of anecdotal evidence. Automobile traffic is increasing, for example, and container ships are backed up in San Pedro Bay, waiting to be unloaded at Southern ... READ MORE >
Managing expectations of dollar strength during and after the pandemic
One of the hallmarks of the pandemic era of global finance has been the relative strength of the U.S. dollar despite the trillions of dollars put forward as fiscal aid to mitigate the economic damage. The greenback has increased 3.89% this year using the Fed’s broad trade-weighted index as our ... READ MORE >