“The rampant demand for the Eurodollar right now shows that nations can’t get enough dollars for international settlement during this global period of monetary deflation.”
If that is true then what is the reasoning for the dollar’s drop today? Talk about inflationary!!! BOHICA! And, it is going to be painful!
The dollar actually jumped to 107 after the release of the NFP report this morning - then investors took time to realize that this will drive treasury yields higher over the coming weeks - causing a drop to down 34 basis points on the day.
Still quite a bit stronger than a month ago...