Economic Surprises Bad For Dollar
The Citi Economic Surprise Index for the U.S. has dropped below -50, what could be considered a "terrible" extreme. Economic reports have come in below economists' expectations for months.
While that means economists will start lowering their expectations for future reports, thus increasing the likelihood that surprises will start occurring on the upside, by the time they've reached this kind of extreme, it has been bad for the dollar and good for assets that benefit from that.