Name: It's Not Looking Great for The Dollar: 3-Minutes MLIV
Uploaded: 2026-08-17T07:40:28+00:00
Duration: 196 s

Speakers

Tom Mackenzie — Anchor, Bloomberg

Paul Dobson — Executive Editor, Bloomberg

Guy Johnson — Anchor, Bloomberg

Summary

The Bloomberg Opening Trade team discusses a weak US dollar driven by soft data and doubts about Fed hikes, while other central banks act. They also flag rising long-end Treasury yields on inflation and supply concerns, and debate whether higher yields will stall the equity rally. Key week-ahead events include Fed minutes, a 20-year Treasury auction, and consumer staples earnings.

US retail sales and University of Michigan sentiment were weak, while inflation is improving.
The dollar is seen under pressure as Fed hike expectations are reassessed.
Emerging market and Asian currencies are benefiting from dollar weakness and intervention dynamics.
Long-end Treasury yields are making new highs above 5% on inflation and supply concerns.
Higher yields are feeding dollar weakness rather than supporting the dollar.
Paul Dobson sees Fed minutes as unlikely to offer new direction.
Key watch items include a 20-year Treasury auction and consumer staples earnings.

Ideas

Tom Mackenzie Anchor, Bloomberg 0:15

Weak data, Fed doubts pressure dollar.

Weak retail sales, soft University of Michigan sentiment, and improving inflation are causing doubts about how much the Fed will hike, while other central banks are expected to act, making non-dollar currencies more attractive and pressuring the dollar; higher US yields are feeding a weaker dollar instead of supporting it.

Tom Mackenzie Anchor, Bloomberg 0:50

Emerging market currencies rally on dollar weakness.

Emerging markets are having a particularly good run, rising for about seven straight weeks on a total return basis as the dollar weakens and rest-of-world central bank action makes those currencies more appealing.

Tom Mackenzie Anchor, Bloomberg 0:59

Asian currencies turn around on intervention help.

Asian currencies are turning around as the weak dollar environment persists, helped by the US joining Japanese intervention, which supports regional currencies against the dollar.

Tom Mackenzie Anchor, Bloomberg 1:07

Yen pinned near 159 needs watching.

The Japanese yen is the notable exception among currencies, staying pinned close to 159 against the dollar rather than moving with the broader dollar decline, making USD/JPY an important intervention-related level to watch.

Tom Mackenzie Anchor, Bloomberg 1:31

Long-end Treasury prices stay pressured.

The market is worried about the bond market, with long-end Treasury yields repeatedly setting new highs above 5% as inflation concerns and heavy supply from government issuance and corporate data-center funding pressure rates; yields can continue rising.

Paul Dobson Executive Editor, Bloomberg 3:01

Watch if rising yields stall equities.

With Fed minutes unlikely to deliver new information, the dollar can keep weakening and bond yields can keep rising; the key watch is whether that starts to brake recent equity market gains or whether earnings momentum can keep equities moving higher.

This Bloomberg Markets video, published August 17, 2026, features Tom Mackenzie, Paul Dobson discussing DXY, EMLC, Asian currencies, USD/JPY, Long-end US Treasuries, SPY. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Tom Mackenzie, Paul Dobson · Tickers: DXY, EMLC, Asian currencies, USD/JPY, Long-end US Treasuries, SPY

It's Not Looking Great for The Dollar: 3-Minutes MLIV

Summary

Ideas

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