DLBR - The Dollar May Be At An Inflection Point

• The US dollar softened last week as yields softened, and it continued to pare the gains scored in the second half of March.
• The dollar's inability to gain after the much-stronger-than-expected March employment data may have encouraged a bout of profit-taking.
• Next week offers a test on the hypothesis that the dollar-bullish divergence meme has been fully discounted. On balance, we expect the US dollar and long-term interest rates to rise next week.

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