Highlights
- The USD has been weak of late, but we think the groundwork has been laid for a mean-reversion trade back to 102-105.
- The historic correlation between stocks and the dollar has been decidedly mixed, such that it is difficult to say how stocks might respond to dollar strength.
- To wit, the dollar and S&P tanked together into the April lows, implying positive correlation, yet the dollar has since hit lower lows while the S&P recovered to all-time highs.
