We don't really buy into the story that geopolitics has driven the dollar stronger this week. If investors were substantially more worried about military conflict at NATO's eastern border, CEE currencies would be a lot weaker, as would German equity markets.
Dow Jones futures remain steady near 46,700 during European hours on Tuesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 futures hold near 6,750, while Nasdaq 100 futures remain close to 25,000.
US Dollar (USD) bounced from fresh cyclical lows, Treasury yields found footing after yesterday’s swings, and US equity futures are up. Near-term, USD can retrace more of this week’s losses before settling into its August range as yield spreads show little scope to move further against USD.