It was a bloodbath in treasuries today (for understandable reasons). Over $100 billion in treasury debt will be auctioned this week, plus corporate debt. Given the fiscal and monetary background, why did the dollar rally? In fact, the dollar soared and it is in a strong uptrend. Why?
I could be wrong, but it might not have soared as much as other currencies tumbled.
Investors are running away from the euro, that’s as easy as that, so they are buying the next two choices, US dollars and Swiss francs.
Why?
The real truth is: nobody really knows.
Some, including “investment advisors”, or “economists” , or"TV talking heads" and similar, or even including myself, might come up with after- the -fact reasonable sounding [to some [:)]] explanations,as to why the observed complicated economic events occurred , but these can never be deemed “the real truth” , they are no more than speculations as to what happened.
Just as economic future events cannot be reliably and consistently predicted, past economic events cannot ever be definitively and conclusively explained [beyond vague generalizations], at least, as far as I can see. [And evidently, I cannot see very far[H]]
Regards onebornfree