Why is the US dollar not behaving as investors expect?

Not acting as a safe haven

It is easy to misread February's market correction. It is not happening in spite of the economic backdrop but, paradoxically, because of it.

On the face of it, the US appears as though its economy is performing strongly. Unemployment fell to a near 45-year low, while the tax reforms and upcoming infrastructure spending will continue to provide a boost to the economy.  Until the sell-off, the stockmarket was approaching an all-time record. Therefore, it would seem sensible to see the correction as an opportunity to 'buy the dip'. Baillie Gifford launches IPO of US Growth trust However, it is paradoxically the strong performance of these very fundamentals that has led to these recent jitters, which are set to continue ove...