Currency Update for Steel Trading Nations

Please see the end of this report for an explanation of data sources.

On May 22 Arun Chopra of Fusion Point Capital wrote: “The dollar has been on a 2 year plus uptrend. When the dollar broke out we saw oil and all commodities collapse. An important long term trend line has broken, having implications across the markets. Global ‘coordinated jawboning’ appears to be having an impact. The dollar is arguably one of the most important assets with respect to asset prices in the entire financial markets. It drives relative currency values, commodity prices, and even corporate earnings. It impacts inflation, and most importantly global deflation. My view up until the last few weeks had been that the dollar was in a sustainable longer term bull market, both technically and fundamentally. Things appear to be changing. Since the dollar bull market that began in 2014, we’ve naturally seen oil prices and a variety of related markets show significant weakness. We’ve also seen the fed for the most part look the other way.”