Peter Schiff Raises Specter Of Early August-Like Collapse In Risky Assets As Dollar Falls To Worst Level In 9 Months Against Yen

The slew of weak data has increased the odds of a deeper cut by the Federal Reserve at the September meeting, weighing down on the dollar. Against the backdrop, economist Peter Schiff flagged the eerie possibility of the return of the yen-carry unwinding. What Happened: The U.S. dollar fell below the 142 handle against the yen for the first time in 2024, observed Schiff in a post on X, formerly Twitter. The next support level for the pair is around 128, a 20% drop from the June high, he said. “This will result in significant pressure to unwind the yen carry trade, which is bearish for long-term Treasuries and risk assets,” he added. As expected, the U.S. #dollar ...