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Weakness in the dollar has bizarre implications The US dollar is no longer regarded as a safe haven and the financial tides are clearly shifting. Massive amounts of capital have started exiting US markets and incredibly flowing into Europe. Money is even going into German debt, which seems bizarre given Germany’s fragile economic and financial position. This has lead to Brussels genuinely believing that the Euro could be a viable alternative to the US dollar. At first glance, that sounds absurd and to a large extent it is. But perception matters, and the current weakness in the USD/UST complex gives Europe belief in the illusion that it can step up and fill the gap.

Published Nov 04, 2025Updated Nov 04, 20252 min read
Weakness in the dollar has bizarre implications The US dollar is no longer regarded as a safe haven and the financial tides are clearly shifting. Massive amounts of capital have started exiting US markets and incredibly flowing into Europe. Money is even going into German debt, which seems bizarre given Germany’s fragile economic and financial position. This has lead to Brussels genuinely believing that the Euro could be a viable alternative to the US dollar. At first glance, that sounds absurd and to a large extent it is. But perception matters, and the current weakness in the USD/UST complex gives Europe belief in the illusion that it can step up and fill the gap.