Another Episode of “Do the Fundamentals Matter?”

We’ve paid some attention lately to the fact that the US dollar is reacting positively to fundamentals, i.e. negative data is negative for the buck, positive data is positive for the buck. That’s a far cry from their tightly negative correlation at the height of riskappetite- dominated markets.

Over the years, especially in the bubble era, a common question to ask is: Do the fundamentals matter?