⚖️💵Dollar Breaking Up From Short-Term Rates: Cable FX Macro
- Rosbel Durán
- Jan 12, 2024
- 1 min read
<.RDDXY> The Cable FX Macro Dollar Index has shown a positive correlation to short-term rate spreads for most of last year, the strongest period was February into March, before the SVB collapse
The relationship broke up after the banking crisis but made a strong comeback when yields started moving higher in July. <.RDDXYIR> The Cable FX Macro Dollar Spreads Index erased the March downturn by August, while spot dollar followed the move higher
We have seen a breakup in the dollar/rates relationship since the FOMC December meeting, the last read in the short-term correlation coefficient is 0.24 vs 0.66 in late September
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