The models are broken
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
Head of FX Strategy
Summary: The yen has blasted lower on the combination of higher global yields and resurgent risk appetite, while sterling stumbles for a second day after its recent break lower. Oddly joining these two currencies in the weak column are a number of EM currencies, which are looking lower versus a resilient USD.