The Macro Charts You Must Know #19

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The week in a nutshell:

The USD continued to rally against major currencies, in what is looking like a broad based rally
- CNY remains the exception, and is still trading firm vs the Dollar, which is strange considering that China’s real estate sector is fighting to survive the Evergrande contagion
The US yield curve remains flat even as long yields and breakevens move higher in anticipation of higher inflation – are we headed into a future of low growth and high inflation?
- The German yield curve is also flattening, in contrast to France and Italy. Could this be a leading indicator of lower European growth rates?
Commodity prices are also starting to move lower
- Copper and Aluminium are off their highs, although oil prices remain elevated
A stronger Dollar coupled with flatter yield curves and higher inflation is not a combination that leads to higher global growth, quite the opposite actually