The Dollar Is Collapsing

The last four days have seen the US Dollar plunge 2% - the biggest drop since June 2016...

https://www.zerohedge.com/sites/default/files/inline-images/20180115_USD1.png

As the chart suggests, there is a key driver of the dollar's moves. China's FX policy!

One might argue that the Renminbi has been a more stable store of value to the Dollar in recent months.

https://www.zerohedge.com/sites/default/files/inline-images/20180115_dollar.png

The dollar is now pushing precariously close to its weakest since January 2015.

https://www.zerohedge.com/sites/default/files/inline-images/20180115_USD2.png

USDJPY is plunging (as Yen strengthens) which suggests The BoJ better do some more ETF buying...

https://www.zerohedge.com/sites/default/files/inline-images/20180115_USD6.png

The Dollar weakness is dragging the Euro higher, entirely decoupled from rate-differentials (once again)

 

https://www.zerohedge.com/sites/default/files/inline-images/20180115_eur1.png

 

And at the same time, hedge funds and other speculative investors have amassed the heaviest long positions on the euro ever, according to the latest CFTC data.

 

https://www.zerohedge.com/sites/default/files/inline-images/20180115_eur2.png

The Group-of-10’s best currency in 2017 is getting fresh momentum from the prospect of a September end to European Central Bank stimulus and an upswing in growth.

And as The Dollar Index plunges, so Emerging Market FX strengthens...

https://www.zerohedge.com/sites/default/files/inline-images/20180115_USD4.png

Led by a resurgence in the Mexican Peso, MSCI EM FX Index is now at its strongest since 2011.