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Week Ahead: US CPI to Make the Doves Cry even if Core Eases, and Euro Vulnerable to ECB Regardless of Decision
The diverging economic performance between the US and Europe, Japan, and China on the other hand is stark. Yet, a greater divergence may be between widespread discussion of de-dollarization and its incredible strength in the foreign exchange market. The eight-week rally in the Dollar Index is the longest in nine years. According to SWIFT, which is not comprehensive but remains by far the largest platform, the dollar's role in international payments (46% in July) is a record and compares with slightly more than a third 10-year ago. The increased share accounted for the Chinese yuan (3.06%, a five-month high) was not ... (full story)