The US Dollar has seen the sharpest sell off since November 2023 and as was the case with that sell-off last year, this has coincided with a peak in US rates, which has led to a dramatic decline in those yields.
In this video, Lee Hardman, Senior Currency Analyst at MUFG, discusses the impact of the sell off as a reflection of investor optimism that the Federal Reserves has ended its cycle of rate hikes and that investors are expecting a softer landing for the US and global economies. As a result, attention is now turning to the likelihood of further rate reduction from the Fed in the upcoming year.
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