Market Surprise: Stock Market Decouples from Dollar
Dr. Duru submits:
By now, everyone has noticed that the inverse relationship between the stock market and the U.S. dollar has broken. For December, the U.S. dollar index is up a healthy 4.7% while the S&P 500 is up 2.1%. I created two charts to demonstrate the dramatic nature of the change relative to trading before December.
The first chart shows a rolling 10-day correlation between SPY, the S&P 500 ETF, and various currency ETFs (an index is provided below). The second chart shows a 30-day rolling correlation. Data are through Monday’s trading.
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