US$/interest rates/growth/risk

By Peter Boockvar - October 2nd, 2009, 9:58AM

There used to be a time when currencies traded off interest rate differentials amongst countries and also expectations for growth. This changed in Sept ’08 through March ’09 when the US$ became a flight to safety during that time of tumult and massive capital markets deleveraging irrespective of the above factors. While one day doesn’t a trend make, the US$ today is trading off interest rate differentials and growth on the heels of the weak payroll data and continued move lower in longer term interest rates (spread between 2′s and 10′s today is the smallest since mid May).

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “US$/interest rates/growth/risk”

Pat G. Says:
October 2nd, 2009 at 9:09 pm
Soon the USD will be the funding currency for the carry trade. Let’s see how it holds up then.

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