Chart of the week – Big US dollar reversal
After a strong run through the summer, the US dollar (USD) reversed course in November with the DXY index falling by over 3 per cent - the largest monthly decline since last November and the fifth largest in the last 10 years.
Why did the US dollar surge over of the summer and what has changed? The short answer is that US growth significantly outperformed other developed markets during Q3 – around 5.0 per cent qoq annualised versus near-zero in the eurozone.
More from this week:
- Real value in real estate
- It all hangs on the consumer
- A new paradigm for investment markets – 2, 3, 4 per cent
- Upside risks in China