The US dollar has crashed below its uptrend line as its bullish narrative has once again been called into question. The shockingly big miss of the April NFP estimate has proven the Fed right and the markets wrong on the economy. Subsequently, the dollar has been knocked off its pedestal as investors have pushed back the timeline of when the Fed will begin to taper. But apart from a brief spike, Treasury yields have mostly stuck to their recent range. So why is the greenback on the defensive? Rising inflation expectations are the culprit as they are depressing real yields. But does this mean it’s only a matter of time ... (full story)