Asks for thoughts on de-dollarization and debasement trades.
Morgan
Marc Chandler
Bond market took little notice, but FX market did: dollar got hit across the board. This plays on fears of debasement and reflects a loss of US trust, leading to a modest move away from the dollar.
Asks if recent currency moves (yen, euro, pound strength) are surprising and how to understand them long-term.
Morgan
Marc Chandler
Two factors: 1) Cyclical - dollar overvalued, modest pullback is reasonable. 2) Structural - deeper move away from dollar as reserve currency, citing Alphabet's foreign-currency bond as evidence.