Dollar hits session lows
The rates market was the tell (as usual).
The US dollar is under increasing selling pressure as the market buys into the Fed’s view that inflation will be temporary. US 10-year yields are set for the lowest close since early March.
I think the real opportunity now is in emerging markets, particularly commodity exporters. Lower US rates are great news for them and risk assets in general, plus they’re slowly catching up on vaccines. Many are still depressed.
Here’s USD/MXN, which could soon break out lower: