Is the Dollar Topping?
One of the more interesting macro factors over the past few weeks has been how USD has traded. In theory, the dollar should have continued strengthening over the course of December. The Fed had a significant hawkish pivot, U.S. growth has re-accelerated following a softer Q3, U.S. equities have outperformed, and China has begun to ease a bit. Yet, despite this backdrop, the the dollar has not made a new high since the end of November. When price action and news diverge it is often an inflection point, and I wonder if that is what is beginning to happen to the dollar.