- November 15, 2022
- Posted by: Stratford Team
- Category: Economy
The currency team at Deutsche Bank is out with a big call today, saying that the US dollar has peaked.
Analysts there argue that the newsflow on Thursday and Friday was materially negative for the US dollar and marks a top. The drivers for dollar strength this year were:
Last week, there were positive developments on all those fronts with the US inflation report, clear signs of China shifting to a ‘living with covid’ model and Russia retreating from Kherson.
Deutsche Bank emphasizes that none of the risks are gone but that they’re the trigger for unwinding a crowded USD-long trade.
“None of the above developments give the all clear on global inflation and
geopolitical risks. But what they do achieve is a remarkable simultaneous
compression of the risk premium that has driven dollar strength throughout this
year,” writes FX strategist George Saravelos.