Week Ahead: Hope Springs Eternal

Marc Chandler17.14K FollowersFollow5ShareSavePlay(16min)CommentsSummaryThe dollar fell against all the G10 currencies, the Antipodeans, and the Scandis, which seem the most sensitive to growth prospects and the risk environment.The euro bottomed in the middle of March, but the upside seemed stalled until the ceasefire was announced.Last week, the PBOC set the dollar's reference rate at its lowest level in three years.Around mid-March, the 30-day correlation of changes in the US dollar-Canadian dollar exchange rate and the Dollar Index rose above 0.85, its highest since mid-2024.Changes in the Australian dollar and the Dollar Index are the most inversely correlated (30-days) since last October (~-0.78). Dilok Klaisataporn/iStock via Getty Images Hope that the ceasefire will lead to the end of the Middle East war fanned risk appetites in recent days. Equities rallied broadly. May WTI and June Brent fell by nearly 11.5%. The dollar fell againstThis article was written byMarc Chandler17.14K FollowersFollowMarc Chandler has been covering the global capital markets in one fashion or another for 40 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense