New Year, New (Thinner) Dollar
The greenback appears to be following its New Year resolutions rather well, on course to end the week at a lower weight after investors received confirmation of easing price pressures in the United States and evidence of surprising resilience in other major trading blocs. The trade-weighted dollar is down almost 1.5 percent this week, and has fallen more than ten percent from its September highs. Yesterday’s inflation numbers were almost precisely aligned with median economist forecasts, but markets reacted nonetheless. Yields jumped and the dollar spiked higher in the moments after the release, and then round-tripped lower less half an...