The US dollar is collapsing, but it’s hard to understand why

The US dollar is under severe pressure as New York accelerates its rise this week.

It’s unclear what exactly is behind the dollar’s weakness. The bond market is calm and stocks are modestly sold. Fundamental news was minimal and Goolsbee’s comments were not particularly conciliatory (at least by his standards). Fed pricing is flat, 47 basis points down for the year.

The cable illustrates the movement, increasing by 30 pips for no particular reason.

This is the only place where I would expect some dollar weakness, but after the previous decline it has remained more or less stable.

So I’m scratching my head about this.

For the UK in particular, the CBI data is the best, but it’s not really a GBP move as the dollar is weak across the board, including AUD/USD.