Eurodollar University

Something HUGE Just happened

Apr 23, 2025
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INSIGHT

Swiss Franc Signals Eurodollar Risk

  • The Swiss franc's surge is a critical eurodollar system warning about global economic fragility, not a signal of the world ditching the dollar.
  • Extreme currency movements reflect risk-off behavior tied to problems primarily in Europe and the eurodollar funding system.
INSIGHT

Franc's Rise Reflects Eurodollar Crises

  • The Swiss franc's rise historically coincides with eurodollar crises focused on Europe, such as in 2010-2011.
  • This reflects a safe-haven flight due to fears about European sovereign debt and banking system problems.
INSIGHT

Dollar Strength Misread by DXY Index

  • The dollar remains strong against emerging market currencies despite a falling DXY index.
  • DXY is skewed by euro, franc, and yen volatility, misrepresenting dollar strength in dollar funding conditions affecting emerging markets.
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