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Inflation Watch

US Dollar Index-DXY

By May 7, 2014No Comments

US Dollar Index

Is the US dollar headed for a fall despite positive economic data recently?

Stronger than expected non-farm payrolls and a surging composite PMI data were not enough to send real interest rates higher. Treasury yields have fallen due to Ukrainian tensions and weaker than expected PMI data from China. The net effect of these developments has been a weaker US dollar, which looks to be in danger of falling to its lowest levels in two years on a trade-weighted basis.