Here the UK 5, 10 & 30 year bonds for September .(with correct carts) . Just September pic.twitter.com/hMj5yP65bC
— Simon Brown (@SimonPB) September 28, 2022
The US$ Index (code: DXY) is at twenty-year highs and within a few percent taking out the highs from the early 2000s and heading back to levels last seen in the mid-1980s.
The reasons are simple and two-fold;
Importantly this is hitting every currency in the world.
Has earnings implications for US companies selling products offshore as those profits are now lower due to US strength.
When does the strength stop?
What to do?
The tables have turned. Emerging markets are much more resilient against the US Dollar than the rest of the G10. Year-to-date, the Dollar has risen a stunning 15% against the G10 (black), but only 5% against emerging markets (blue). EM is the new standard bearer for stability... pic.twitter.com/ToaQvQB9DS
— Robin Brooks (@RobinBrooksIIF) September 27, 2022