Dollar Hegemony in the Land of Oz - 5

Summary
  • An examination of Dollar Hegemony.
  • Factors that have driven the dollar to recent multi year highs.
  • Contributing factors include the yen carry trade and a culmination of wrong way market bets.
In our four part Oz series we examined the global impacts of: recent CB (central bank) responses to systemic economic distress; CB econometric utilisation and the media economic narrative; the U.S. Dollar as a global fiat currency; and the perception of the CB structure as a public good.
In this follow up we examine Dollar Hegemony. Today, what has driven the dollar to recent multi year highs? A central factor would be the media narrative and Central bank econometric data utilised as examined in Part 1, 2, 3 & 4 of this series.
Contributing factors would include the Yen carry trade and a culmination of wrong way market bets:
  • Short US Dollar
  • Long HY and EM debt
  • Long Commodities
  • Long Energy
  • Short Eurodollar
  • Short rising interest rates

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