FX Thoughts : The Lonely USD And EM Dreams
The USD dollar is in a lonely place this year as central bankers break ranks in their hierarchies and mostly losing heart.
The typical job of a central banker is to manage 1. Inflation with 2. Growth. Some have it harder, with currency restrictions in place;or face runaway inflation or deflation; or even political turmoil.
The Fed is perhaps the only central bank around with free reign and control despite what criticisms they face, the politicians have learnt to leave them alone.
Small central banks have learnt that they cannot win. It is plain impossible after we witnessed Soros break the Bank of England on Black Wednesday.