Breaking Benjamin: Sell the dollar, Deutsche Bank says ...Middle East

The note has 11 themes, including buying gold and EUR/CAD but I'll highlight the main message.

The top theme is titled “Breaking Benjamin” and argues that the damage to the dollar is already visible in the flows. Deutsche Bank points to an unprecedented flip in the historical relationship between the USD and US risk assets: the currency has begun to rise and fall alongside domestic equities rather than against them, undermining its traditional safe-haven role. High-frequency data show a sustained slowdown in foreign purchases of US securities, while America’s net international investment position has sunk deeper into negative territory than any other G10 economy.

We argue that the damage to the USD has been done and the funding of the dollar's two big holes - the budget and the current account - is now emerging as a market driver. In this world, relative interest rate differentials become less important, valuations and flow dynamics more relevant.

Theme #2

DB's second theme is “It’s Reigning Yen,” and the strategists recommend buying JPY against USD and, for investors wary of negative carry, against the over-valued Swiss franc. They argue that the near-perfect four-year correlation between USD/JPY and the US 10-year Treasury yield is breaking down as US exceptionalism fades and the Bank of Japan moves gradually toward policy normalisation.

It’s been a simple equation for almost four years now – USD/JPY has had a 95% correlation to the US10y, and the current yield at 4.4% suggests USD/JPY should be 150. That's well above spot, but looks like a justified breakdown of the relationship, as the existing regime is fading

From a trading perspective, Deutsche Bank advises fading dollar rallies and positioning for yen appreciation as the most levered expression of a broader anti-dollar move.

This article was written by Adam Button at www.forexlive.com.

Hence then, the article about breaking benjamin sell the dollar deutsche bank says was published today ( Tuesday 20/05/2025 - 09:03 PM ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.

Read More Details
Finally We wish PressBee provided you with enough information of ( Breaking Benjamin: Sell the dollar, Deutsche Bank says )

Also on site :

• ‘The Princess Bride’ Star Cary Elwes Shares Tribute to Rob Reiner: ‘From That Very First Meeting I Fell In Love With Him’
• A Shockingly Recent Year Just Cracked the Top 5 of Rock's Most Legendary Years
• Stunning ISS Photo of Florida, Cuba Captures & 039;Moonglint& 039;