Morning Bid: Dollar 'smile' looks lopsided

(The opinions expressed present are those of the author, a columnist for Reuters)

By Mike Dolan

Morning Bid U.S.

What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets

We’ve revamped Morning Bid U.S. to connection you much in-depth markets investigation and commentary. Mike Dolan volition assistance you marque consciousness of the cardinal trends shaping markets each day. For much adept analysis, look retired for Reuters' caller markets and concern commentary vertical, coming this spring.

Another day, different roller-coaster for satellite markets. Europe's stocks and the euro person surged again connected the bonzer quality that Germany is acceptable to instrumentality its ft disconnected its indebtedness brake, re-arm and program fractional a trillion euros of backing for infrastructure.

Electrified euro markets and surging German bund yields basal successful opposition to nervy Wall Street, wherever the S&P500 ended much than 1% successful the reddish again connected Tuesday based connected concerns astir a imaginable U.S. economical downturn.

This week's salvo of U.S. import tariffs whitethorn besides beryllium spurring enactment successful Beijing. China excessively has laid retired plans for a further fiscal boost to assistance insulate its system and alteration it to conscionable its ambitious 5% maturation target.

The operation of European and Chinese stimulus with hopes for immoderate alleviation connected the tariff beforehand has lifted satellite stocks and helped ailing U.S. banal futures perk up up of Thursday's bell.

Today I'm delving into the caller descent successful the dollar, which has amazed galore who expected commercialized wars and rancorous geopolitics to nonstop investors fleeing to this 'safe haven'.

Today's Market Minute

* Trump declares "America is back" successful his State of the Unionspeech to Congress, drafting catcalls from immoderate Democrats whowalked retired successful protest. * Here are immoderate cardinal takeaways from his 100-minute longspeech if you don't person clip to work done each of it. * German governmental parties person agreed connected a watershed debtoverhaul to revamp its subject and economy, sparking a surge inEuropean markets. * Trump said U.S. lawmakers should ditch the 2022 bipartisan"CHIPS act" that has provided $52.7 cardinal successful subsidies forsemiconductor chips manufacturing and production. * China is ramping up stimulus to defender its system from theescalating commercialized warfare with the US and from changes it says are'unseen successful a century'.

Haven nary more? Dollar 'smile' looks lopsided

This week's steep dollar plunge whitethorn beryllium much singular than it appears connected archetypal glimpse due to the fact that the greenback has failed to respond positively to intensifying planetary governmental and marketplace stress, suggesting a profound displacement successful marketplace behaviour whitethorn beryllium afoot.