A STRONG DOLLAR ALSO BEHIND BOND RALLY Some investors are buying U.S. Treasurys without hedging against the risk of a decline in the dollar International Carry Trade investors typically hedge their holdings of foreign bonds using derivatives AS A CURRENCY HEDGE, which allow them to borrow a foreign currency in exchange for their own and […]
eurusd, TRIGGER$ January 2019, USD
THE BIGGEST MARKET WARNING YET! A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS & PUBLIC ACCESS) READERS REFERENCE SOURCE: 12-28-18 – Alhambra, Jeffrey Snider – “Uh Oh; In A Month Of Big Warnings, The Biggest Yet” YOUR MATASII RESEARCH TAKEAWAYS: Major Market participants are growing concerned about a future problem that they feel requires some increasing level of […]
THE GLOBAL DIVERGENCE DRIVING THE US$ HIGHER — SOURCE: 09-28-18 Authored by Ritesh Jain via WorldOutOfWhack.com, — “Trump’s Imperial Circle (Or The Most Important Chart In The World)” — Macrostrategy Partnership writes about perhaps the most important chart of the decade… Policy divergence is now set to accelerate the US$ rally. The Fed is in a battle […]
DOLLAR TRADERS SEE THE FED’S NEXT RATE HIKE AS A BIG SELL SIGNAL — SOURCE: 09-20-18 Bloomberg – “Dollar Traders See the Fed’s Next Rate Hike as a Big Sell Signal” — Could plunge 10% in 6-9 months: BNP Paribas Asset Management FX markets may be caught off guard if Fed flags tariff risks When […]
THE US$ IS REPLACING THE VIX AS THE NEW GLOBAL RISK MEASURE — CLIPPED FROM: 08-14-18 – “Forget About Turkey: Asia Is The Elephant In The Room” — Back in November 2016, the BIS picked up on a topic we have often discussed over the years, namely the critical role that dollar abundance (or shortage) plays […]
TRADE WARS ARE BEARISH NEAR TERM, BULLISH LONG TERM FOR THE DOLLAR —- SOURCE: 07-05-18 ZeroHedge – “Why One Trader Thinks Trade War Will Send The Dollar Tumbling” — LONG TERM TRADE WARS ARE DOLLAR BULLISH According to conventional wisdom, trade wars are bullish for the dollar, for two main reasons: They tend to be […]
WANT TO WIN DURING A PROTRACTED TRADE WAR? GO LONG THE DOLLAR! — SOURCE: 07-05-18 Bloomberg – “Want to Win the Trade War? Long the Dollar” — Greenback seen a better haven than yellow metal in trade melee Currency’s correlation to stocks became inverted this year Trade wars are good, and easy to win — […]
eurusd, TRIGGER$ July 2018, USD
TURMOIL IN EMERGING MARKETS DUE TO EVAPORATION OF US$ FUNDING — SOURCE: 06-05-18 ZeroHedge – “Central Banker Observes Sudden “Evaporation” Of Dollar Funding, Warns Of Global Turmoil” — Last October, just as the Fed started shrinking its balance sheet, we published yet another article on what is arguably the biggest threat to not only risk […]
THE SHELL GAME OF TIGHTENING MONETARY POLICY WHILE MAINTAINING ACCOMMODATIVE MONETARY CONDITIONS — SOURCE: 06-06-18 Michael Lebowitz – “Our Two Cents on the Dollar” — “There are benefits of where the dollar is and there are costs of where the dollar is,” Mnuchin said during a panel discussion at the World Economic Forum in Davos, […]
UNDERSTANDING THE 2017 US DOLLAR SWOON & RECENT 2018 LIFT EXPLAINING THE 2017 US$ SWOON — SOURCE: 05-12-18 Global Money Trends – “US$ Continues to Sag despite Outlook for 3 more Fed rate hikes” — Well into 2018, a few FX traders are still struggling to understand the underlying bearish trend of the US$. […]