The USDollar index's recent acceleration lower has pushed it into the red for 2021, erasing the 3% surge seen in the first few months of the year...
Source: Bloomberg
As Bloomberg notes, the recent weakness came after Fed officials reiterated (vehemently) on Monday that they see recent price pressures as transitory and intend to keep policy accommodative for some time to come. Meanwhile, investors are brushing off fears that the new Indian virus variant could threaten reopening drives in the U.K. and Europe, while a surge in raw materials from iron to oil and copper has buoyed commodity-linked currencies.
“Global growth should broaden, and the vaccine and growth laggards should bounce back,” said Deutsche Bank AG strategists George Saravelos and Shreyas Gopal.
“This should be conducive to a return of broader USD weakness, and we see European currencies as the prime beneficiaries.”
But all of this has pushed the dollar down to a critical support level, near its weakest since 2014...
Source: Bloomberg
And the dollar's recent slide has reignited interest in gold (as bitcoin comes under pressure)...
Of course, the only thing that can stop the dollar's demise is Goldman going short again....
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As always, thanks from the directionally challenged for the arrows on the.charts.
