According to SWIFT, the U.S. Dollar was used for 46% of all international payment transactions in July, a RECORD high
Meanwhile, use of Euro is collapsing. De-euroization rather than de-dollarization? Source chart: Bloomberg
Over the last 3 years, the US Money Supply (M2) has increased by 14%, US inflation (CPI) has increased by 18%, and National Debt has grown by 24%
And over that time the US dollar Index ETF has gained 19% while the Gold ETF has lost 5%. As eveyone predicted... Source: Charlie Bilello
Japanese Yen falling to lowest levels against the U.S. Dollar since the BOJ intervened last year
150 level approaching fast 👀 Meanwhile, The Bank of Japan announced an extra bond-buying plan for this week as a global debt selloff forces policymakers into the market to curb sharp increases in yields. The BOJ will purchase extra amounts of 5-to-10-year debt on Wednesday as it strives to slow rising yields that are at the highest level in a decade. The benchmark 10-year maturity climbed to 0.775% Monday, a level last seen in 2013. Japan’s 20- and 30-year yields are at similar peaks while Treasury yields also keep moving higher. Japanese sovereign yields have risen as speculation grows the central bank will end its negative interest rate sooner rather than later, while the US Federal Reserve will also keep borrowing costs high. The BOJ has already conducted three unscheduled buying operations since late July to manage yields after adjusting policy to let them rise more. Source: Barchart, Bloomberg
Global currencies vs. the dollar last 10-years % change
Source: Charlie Bilello
HAVE YOU EVER HEARD ABOUT DE-EUROIZATION ?
Based on SWIFT international payments, we are witnessing 'de-euroization' and not 'dedollarization. The euro's share in SWIFT global payments has dropped to 23% from 38% at the start of the year. Are Russia's SPFS and China's CIPS eating up the euro? Meanwhile, China's share in SWIFT payments reached an all-time high of 3.47% in August. Source: HolgerZ, Bloomberg
Markets summarized in one chart: Yields up, USD up and Equities down
Source: Game of Trades
OIL AND THE DOLLAR SQUEEZE...
Most think oil up must be accompanied with the dollar trading down, but the latest surge in oil has taken place with the dollar squeezing hard as well. Source: TME
The attractiveness of cash in a multi-asset portfolio (%)
Source: SG, TME
