If the legendary soft landing does materialise, the Fed cuts rates and markets watch endless political arguments about the rise in US debt levels, then the Dollar will weaken, but that’s for another day. For now, the USD is basking in US economic exceptionalism.

The Treasury is selling bonds, yields are rising, and money is being sucked into the USD, comfortably financing the current account deficit – a fiscal/monetary policy mix that is designed to help the Dollar overshoot to the upside and there’s further to go.

EUR/USD is heading for a a look at parity, and USD/JPY will break 150 unless the Japanese authorities ‘do something’. Unless ‘something’ extends beyond token intervention and harsh words, we’ll carry on testing that level.