The Macro Charts You Must Know #20

If the slides above aren’t loading, you can read Week In Charts over here.

The week in a nutshell:

The USD continued to rally against major currencies, in what is now a broad based rally except vs the CNY
The US yield curve remains flat even though breakevens continue to trade close to their 2021 highs
- Contrasting moves in the yield curve and breakevens point toward a future of higher prices and low or stagnant growth
European yield curves have started to diverge – if the German yield curve continues to flatten, the French and Italian curves should follow
Commodity prices are also starting to move lower, which could herald not only lower inflation, but also lower global growth
- Copper and Aluminium are off their highs; Oil prices too (at least for the moment)
A stronger Dollar together with flatter yield curves, lower commodities, and higher inflation from supply chain problems points to future global economic weakness