💵🔻Dollar Records +3 Sigma Day: Cable FX Macro

• Thursday session goes to the history books, the magnitude of change in the dollar index and USTs has been seen rarely. The return profile below shows how uncommon it is to see broad dollar losses beyond 1.0% since 2021.

• On a separate note, Bloomberg noted dollar riskies turning bearish for the first time since September in the 1m tenor. With yields eroding the carry advantage, Fed pricing lifting rate cut bets, and a negative sentiment around the world's preferred reserve currency, it makes sense to see hedge funds rushing to add downside structures in the dollar.