Dollar's Upside Correction: Is It In Its Final Phase This Week?

Marc Chandler 17.1K Follower s Comments Summary Over the past 30 and 60 days, the correlation of changes in the Dollar Index and two-year US yields is at the lower end of where it has been in the last eight months (~0.38-0.40). The new front in the tension between the Trump administration and the Federal Reserve arguably helped the euro bottom near $1.1600. The dollar reached almost CNH6.9610 before the weekend, a marginal new low since May 2023. Sterling sensitivity to the broad dollar movement (Dollar Index as proxy) has increased. The rolling 30-day correlation of changes is near -0.85, near the most extreme since late October. The Canadian dollar showed little reaction to the deal Prime Minister Carney struck with Beijing that allows 49k Chinese-made EVs at the most-favored-nation tariff rate of about 6.1%. The US dollar mostly consolidated against the G10 currencies last week, though the combination of firm data and the shrugging off of the latest administration attempt to influence Fed policy gave it a firmer bias. This article was written by 17.1K Follower s Marc Chandler has been covering the global capital markets in one fashion or another for 25 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense Comments