💵➖Dollar Most Correlated to Equities Since 2016: Cable FX Macro

• The dollar has recently seen downside with a second day of losses as the S&P 500 index rises, the latter is now closing the gap into 3,900.0

• When we look at the relationship between equities and the dollar, we note an R^2 of 0.27 and a negative beta. The dollar is the most sensitive currency in the G10 to equity price innovations, it holds a beta of -1.727

• Also, when we look at short-term correlations the coefficient is now at -71%, this is the strongest daily negative correlation between the dollar and equities since 2016 (25-day)