The Implications of Inflation on the Dollar

The general narrative out there right now is that stress related to us funding stress will lead to a sell off in the US dollar as a consequence of it. But if we look at the empirical evidence around partial shutdowns over the past few decades, we actually reached the exact opposite conclusion. The dollar has traded at a weaker level 100 days after the implementation of the partial shutdown. So this could be a true game changer once we get to the point where the dollar trend reverses.