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Robin Brooks highlights a significant divergence in the performance of the Dollar against G10 currencies compared to emerging market currencies. According to Brooks, the Dollar is trading near recent highs versus the G10 group, while it is approaching lows against emerging markets. Brooks suggests that the performance of the Dollar in emerging markets is a more accurate indicator, and expects considerable weakness in the Dollar ahead.
Brooks has previously addressed market reactions in oil and energy prices. He argued that recent oil price swings were driven by panic and not by new information since the Strait closure in his analysis of oil price panic. Earlier, he suggested that a peace deal could reduce Brent crude’s risk premium, potentially bringing oil to $85 a barrel and U.S. gas to $4 per gallon, as outlined in his Brent oil price forecast.