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Overview
The US dollar (DXY) was weak yesterday but it has been pummeled today. It is down against the G10 currencies and all but the Russian ruble and Turkish lira among emerging market currencies. The
Dollar Pummeled On Risk To Fed's Independence
Summary
- The US dollar (DXY) has been pummeled today. It is down against the G10 currencies and all but the Russian ruble and Turkish lira among emerging market currencies.
- The proximate trigger of today's sell-off were news reports that a successor to Fed Chair Powell could be announced in a few months.
- While the euro and sterling rose to new three-year highs yesterday, the yen was the weakest among the G10 currencies, falling slightly against the US dollar.
- Most equity markets are higher. In the Asia-Pacific area, China, Hong Kong, Australia, and South Korea were notable exceptions.
- Europe'sSTOXX 600 is up about 0.25% near midday, after falling by nearly 0.75%yesterday. US index futures are 0.2-0.4% higher.
Marc Chandler has been covering the global capital markets in one fashion or another for 25 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense