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Is the US Dollar's Decline since the Election set to Correct?
The US election in early November was an inflection point. Stocks have rallied. The dollar has been sold. The rise in US yields has dragged up the yields in many other countries, especially in the dollar-bloc. European bonds have held in better, and peripheral European bonds have shined. Italy's 10-year benchmark yield fell to a new record-low ahead of the weekend. Before the political drama in Washington last week, we had the market had largely discounted the adverse developments. The move seemed to be getting stretched technically, and the sharp backing up of US rates in the past week may have also reached a ... (full story)