S&P 500 Surges to Fresh Four Year Highs and the Dollar...Rises
When risk appetite trends surge, we usually expect safe haven assets to retreat. However, where the benchmark S&P 500 surged to fresh highs, other measures of market-wide sentiment were either restraiend or outright contradictory. From the FX market, the market's favored safe haven currency (US dollar) actually netted gains while carry interest was notably reserved in its own climb. What does this divergence mean for underlying sentiment and fundamentals? Will this unusual development persist or will there be a sharp convergence? And, if the latter, what asset or market corrects to meet its counterparts? We discuss this and more in today's video.