-
Can the US Dollar and Bonds Rally Together for Long?
After reversing lower despite a robust jobs report on July 2, the greenback saw limited follow-through selling at the start of last week and instead recovered fully. The major currencies that bore the brunt of the dollar's gain were those currencies that are understood to be ahead of the Fed in normalizing policy. The Norwegian krone and dollar-bloc currencies bore the bulk of the greenback's adjustment, while clear laggards, like the yen and Swiss franc, posted moderate gains (0.8% and 0.7%, respectively, last week). The dollar's recovery occurred alongside a slide in US yields. The 10-year note yield briefly traded ... (full story)