Dollar Retreats as Economic Data Slows and Geopolitical Shifts Bolster the Euro
The dollar is down sharply against most of its major rivals this morning as bets on the ‘US exceptionalism’ trade are unwound and investors throw money at the euro area ahead of an expected rise in government spending on defence. Defying consensus forecasts, on a year-to-date basis, the most widely-quoted measure of the greenback’s value—the DXY “Dixie” dollar index—is now down 2.3 percent, while the euro is up 1 percent, and the Japanese yen is sitting on top of the major-currency leaderboard with a near-4-percent gain. Stagflation worries are suddenly stalking the US economy and financial markets. Friday’s personal spending...