How much further can the US dollar appreciate?

Expect nuanced performance

On a cyclical basis, the bond market is fired up about rising inflation expectations, driving global bond yields higher.

There is almost a 'relief rally' feel as markets discount a potential shift from monetary policy influence towards some form of increased fiscal thrust, particularly in the US.  How much fiscal stimulus gets delivered is unclear given the reluctance of a Republican-led Congress to add to an already sizeable deficit. We also think the move higher in yields is likely to run into some long-term secular headwinds.  Factors such as globalisation, technology, debt servicing of the high existing debt levels, and aging demographic trends have all contributed to developed market disinflationar...