USD: Broad-based decline - AmpGFX

Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that when you have the two largest non-dollar major currencies rising vs. the USD, in defiance of their narrowing yield advantage, and emerging market currencies rising against the USD, then the USD decline starts to look very broad-based.

Key Quotes

“As such, the market tends to pay less attention to news that might be bullish for the USD, but react more to positive developments for other currencies.”

“In conjunction with stronger global demand, a weaker USD is also contributing to higher commodity prices.  This then tends to support growth, assets, and currencies in commodity-driven economies.  Further adding to the breadth and power of the USD decline.”