The dramatic re-pricing of the Fed curve and the bullish disinversion of the US curve is a Dollar negative, economists at ING report.

Swiss Franc and Japanese Yen to stay bid

“The first major US financial crisis since 2008 has seen a significant bullish disinversion of the US yield curve – which is Dollar bearish.” 

“We have been arguing for some that time that bullish disinversion would be required to send the Dollar lower – but had felt that it would be US disinflation or weak activity data – not a financial crisis – which would be the trigger.” 

“Expect investors to remain wary this week and continue to prefer the CHF and JPY over the Dollar. In a way, we are going back to former periods of risk aversion – when selling the Dollar and buying US two-year Treasury notes was the key strategy in a crisis.”