-
Data and the Virus may Determine the Magnitude of the US Dollar's Bounce
There is no reason to expect the investment climate is going to change next week. The key drivers remain the same. The resurgence being seen in the virus is posing a speed bump in the re-opening and recovery process. The work of monetary and fiscal policy is not over. The low real and nominal interest rates are encouraging risk-taking by savers, and this means equities, commodities, and emerging markets. Gold, which is often perceived as a safe haven, appears more driven by the low nominal and real interest rates than fear. In this environment, the dollar thas fallen out of favor. There is a run against the dollar, ... (full story)