Morning Call: Dollar powers into the high ground
Senior Editor, Saxo Bank
Summary: Join our SaxoStrats experts as they discuss how the dollar has zipped to its strongest since 2002 against a broad range of currencies and why this is bad for global economic growth. We also look at at how gold is faring in light of the greenback's advance and what the latest Brexit twist has done to sterling.
FX Update: Trade tensions still driving the narrative
Even with threats that China is set to announce retaliatory measures, the market is trying to maintain calm, hoping a Trump-Xi call will help. Still our measures of Global risk suggest strains are near their recent worst levels for the cycle. EURUSD has reached pivotal level near 1.1100.
More on the yield curve inversion, recession risk and market path from here
The important US yield curve inversions actually started months ago, not yesterday. Yield curve inversions point to a rising recession risk and the related risk of ugly market outcomes.
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