TIME IS RUNNING OUT ON THE US$ & ITS RESERVE CURRENCY STATUS MATASII RESEARCH “NOTES” CHANGING SENTIMENT TOWARDS THE US The dumping of the dollar is a process that is clearly underway. There has been a steady uptick in the number of countries dumping significant portions of their dollar holdings as a result of them having […]
SF Drivers Currencies
UNDERSTANDING THE 2017 US DOLLAR SWOON & RECENT 2018 LIFT
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$. […]
THE US$ SHORT SQUEEZE MAY ONLY BE STARTING?
THE US$ SHORT SQUEEZE MAY ONLY BE STARTING? What is driving what? Currently many feel a US$ shortage was responsible for pushing the LIBOR-OIS spread up, but it also understood that the US$ follows the LIBOR-OIS spread with an approximate 3 month delay. It would appear that “a little soon begets a lot”! This is […]
UNDERSTANDING THE 2017 US$ WEAKNESS
UNDERSTANDING THE 2017 US$ WEAKNESS Not shown in the chart above is the US Treasury selling pressures from China and Japan as they reduced their dollar FX Reserves. It really began to increase after the Trump election victory. Prior to this the banks were already concerned with what they saw ahead for the US Economy […]
THE US$, 10Y UST, YIELD CURVE AND TRUMP APPROVAL RATING ARE HIGHLY CORRELATED
THE US$, 10Y UST, YIELD CURVE AND TRUMP APPROVAL RATING ARE HIGHLY CORRELATED The US Dollar and 10 Y US Treasury has become a “close correlation trade” But Also Remember Trump’s Approval Rating is Closely Tracking the US$ As well as the US Treasury Yield Curve A possible rise in the US$, despite lower UST […]
EURODOLLAR SHORTAGE IS CRIPPLING GLOBAL CREDIT GROWTH
EURODOLLAR SHORTAGE IS CRIPPLING GLOBAL CREDIT GROWTH When the Shanghai Accord was launched the US Dollar needed to be taken down from a level approaching 117 based on the BIS’s REER. The “trend line” suggested this was a global limit to the Us Dollar’s strength which has previously forced or triggered major adjustments in […]
CURRENCIES — CENTRAL BANKS BEING FORCED TO LIQUIDATE FX RESERVES
CURRENCIES — CENTRAL BANKS BEING FORCED TO LIQUIDATE FX RESERVES China (PBOC), Japan (BOJ) and many of the OPEX countries (specifically Saudi Arabia) are currently being forced to liquidate FX Reserves held in the form of US Treasuries as a means of funding Current Account deficits. These Current Account deficits are a result of collapsing […]
BOJ BALANCE SHEET GROWTH OUT OF CONTROL
BOJ BALANCE SHEET GROWTH OUT OF CONTROL