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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- While the constant liquidity injections from major central banks keep pushing US equities to new all-time highs, growing concerns over the contraction in Chinese liquidity and the rising uncertainty over the Delta variant have also increased demand for safe assets such as the US Dollar.
- This chart shows that the 3M Correlation between the SP500 and USD index is currently sitting at the low of its LT range (3M correlation usually oscillates between -0.6 and +0.6).
- Therefore, investors have been increasingly looking at the US Dollar as a hedge against a sudden rise in price volatility or a sharp equity drawdown.
- With the recent rise in the SKEW index ('crash protection') and the strong demand for US Dollars, should investors worry about US equities in the short term?
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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