-
Testing the US Dollar's Breakout
The US dollar surged last week, with the Dollar Index rising 1.25%, the most since April. The dollar is being boosted by two drivers. The first is the policy mix and interest rate divergence. The other is the intensification of pressure on emerging market. Turkey has a disastrous combination of more fundamentals, large short-term foreign currency debt obligations, unorthodox policies, and the lack of credibility. On top of this, Erdogan has antagonized the US when it is keen to flex its muscles. The lira collapsed 21% last week and as the headlong plunge accelerated risk assets fell out of favor. This included other ... (full story)
