US exceptionalism: is it still the story?
For years the US outperformed: stronger growth, higher rates, a stronger dollar. The question now is whether the exceptionalism trade has more room or is fully priced.
Post your view:
- the evidence for and against continued outperformance
- how the story shapes the dollar
- the data that would end the narrative
Background: the dollar index and US retail sales.
Background: The US Dollar Index (DXY) explained: its six currencies and their weights
The ICE US Dollar Index measures the dollar against six currencies, with the euro at 57.6%. How it's calculated, why its 1973 base and fixed weights matter, and how traders use it.
What currencies are in the US Dollar Index?
The euro (57.6%), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and Swiss franc (3.6%).
What does a DXY reading of 100 mean?
The index was set at 100 in March 1973. A reading above 100 means the dollar is stronger against the six-currency basket than it was then; below 100 means weaker.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…