Carter Johnson

@carter-johnson.bsky.social

FX/rates reporter at @bloomberg.com. Feel free to reach out: cjohnson675@bloomberg.net. Stories at: https://www.bloomberg.com/authors/AUy59l24H-U/carter-johnson

Another sign that the dollar’s dominance is in trouble: US importers are increasingly being asked by their foreign counterparties to settle transactions in currencies other than the US dollar, such as euros, RMB, Mexican pesos, and Canadian dollars.

Many Exporters No Longer Want Dollars, US Bank Executive Says

When Paula Comings, the head of currency sales for US Bancorp, talks to US importers, she increasingly hears the same message: Their foreign counterparties no longer want to be paid in dollars.

bloomberg.com

“Rare, ugly and worrying”. That is how Krishna Guha, vice-chair at Evercore ISI, described the market moves today. In the last 30 yrs he said there are only four other episodes in which the U.S dollar index depreciated more than 1.5% with the yield on U.S. 30-year government debt up more than 10bps

This might age poorly—spectacularly so—but it's possible we don't get the negative 5-to-10% FX reaction that everyone is expecting if tariffs are announced tomorrow. Retail traders, amped up by scary headlines, may drive the CAD and MXN to overshoot, but the case for shorting is quite flimsy.. (1/2)