Significant bullish disinversion of the US yield curve to send Dollar lower – ING
|The dramatic re-pricing of the Fed curve and the bullish disinversion of the US curve is a Dollar negative, economists at ING report.
Swiss Franc and Japanese Yen to stay bid
“The first major US financial crisis since 2008 has seen a significant bullish disinversion of the US yield curve – which is Dollar bearish.”
“We have been arguing for some that time that bullish disinversion would be required to send the Dollar lower – but had felt that it would be US disinflation or weak activity data – not a financial crisis – which would be the trigger.”
“Expect investors to remain wary this week and continue to prefer the CHF and JPY over the Dollar. In a way, we are going back to former periods of risk aversion – when selling the Dollar and buying US two-year Treasury notes was the key strategy in a crisis.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.