Elias Haddad at Brown Brothers Harriman argues the Dollar can keep benefiting from widening US-G6 rate differentials and higher US real yields.

Deutsche Bank’s Jim Reid and team note that the US Dollar was the strongest-performing G10 currency last week as Treasury yields surged and markets repriced a more hawkish Federal Reserve.

Dow Jones futures decline by 0.35% to trade near 51,970 during European hours on Monday. Meanwhile, S&P 500 futures fall by 0.47% to trade around 7,770, while Nasdaq 100 futures lose 0.97% to trade near 30,590.

ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner see the Dollar facing some near-term downside risks after a strong rally. They highlight upcoming US labour data and August PCE as key drivers for October FOMC rate expectations.

HSBC’s FX Viewpoint argues the broad US Dollar is likely to strengthen modestly in the near term as cyclical, political and structural forces turn more supportive.

The US Dollar (USD) reflects a flat performance at the start of the week. In the Asian trade, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades calmly at around 101.10.

Iran has offered to reopen the Strait of Hormuz within seven days of Washington accepting its terms, and buyers have taken the Dow Jones Industrial Average higher before Washington has replied. The index trades near 51,800 on Friday and is on track to end a three-session losing run.

OCBC strategists Sim Moh Siong and Christopher Wong highlight that resilient US data, sticky inflation and elevated energy prices are pushing US Treasury yields higher and supporting the US Dollar.

ING strategists Francesco Pesole and Frantisek Taborsky note that rising back-end yields and risk-off sentiment are helping consolidate recent Dollar gains, even if they look stretched versus short-term fundamentals.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the recent pullback in Oil prices has eased global bond selling and cooled the Dollar rally.

Dow Jones futures gain by 0.14% to trade near 51,790 during European hours on Friday. Meanwhile, S&P 500 futures rise by 0.33% to trade around 7,780, while Nasdaq 100 futures advance 0.34% to trade near 30,870.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 101.15 in the early European trading hours on Friday.

The US Dollar continues to outperform its peers as United States (US) Treasury Yields keep rallying due to firm expectations of more interest rate hikes by the Federal Reserve (Fed) in the near term.

The 30-year Treasury yield touched 5.50% on Thursday, and two Fed officials gave bond buyers no reason to expect relief. New York Fed President Williams said another rate increase this year looks reasonable, and Philadelphia Fed President Paulson said rates may need to rise a little more.

The Dollar Index has won back about 90% of what it lost between the late-July top and the August low. It reached 101.40 on Thursday, its highest since late July, and is heading for a fourth straight gain.

The 30-year Treasury yield rose to its highest since 2004 on Thursday while the two-year yield barely moved, and the Dow Jones Industrial Average is falling with the long one. The index dropped as far as 51,100, its lowest since June, and is on track for a third losing session in a row.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that the Dollar is advancing broadly as a hawkish Federal Reserve stance combines with strong US economic outperformance.

MUFG’s Derek Halpenny notes the US Dollar (USD) is strengthening as US fixed income sells off, driving global bond weakness and higher yields across the curve. A poor 5-year UST auction and strong US and global PMIs are reinforcing hawkish Federal Reserve (Fed) rhetoric.

ING’s FX Strategist Francesco Pesole notes the Dollar has jumped, with DXY above 101.0, supported by strong US PMIs, higher Oil and soft risk sentiment, but now looks stretched versus fundamentals.

Dow Jones futures decline by 0.17% to trade near 51,780 during European hours on Thursday. Meanwhile, S&P 500 futures lose by 0.34% to trade around 7,750, while Nasdaq 100 futures depreciate 0.5% to trade near 30,610.

The US Dollar (USD) holds onto Wednesday’s strong gains in the Asian trade on Thursday. As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades firmly near a fresh eight week high of 101.23 posted the previous day.

There was no respite for the US Dollar’s (USD) march north on Wednesday. In fact, the Greenback has clinched its third consecutive day of gains, hitting at the same time fresh two-month highs.

The strongest S&P Global flash Purchasing Managers Index (PMI) readings since 2021 have done nothing for the Dow Jones Industrial Average. Manufacturing came in at 57 against a 53.5 forecast and services at 58.7 against 56.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the Dollar is extending gains as US economic data and policy dynamics remain supportive. September US PMI is expected to confirm US growth leadership versus Eurozone, UK and Japan.

The US Dollar trades higher as financial markets embrace hawkish Federal Reserve (Fed) view. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.35% higher to near 100.90, the highest level seen in over seven weeks.

ING strategist Francesco Pesole notes the Dollar’s resilience despite lower Oil prices and improved global risk sentiment, highlighting that hawkish Federal Reserve communication is keeping the Dollar supported.

Dow Jones futures gain by 0.12% to trade near 52,350 during European hours on Wednesday. Meanwhile, S&P 500 futures advance by 0.10% to trade around 7,840, while Nasdaq 100 futures inch higher 0.03% to trade near 31,040.

The US Dollar reflects strength on Wednesday amid firm expectations that the Federal Reserve (Fed) will deliver more interest rate hikes this year.

The US President Donald Trump, after finishing his meeting with Ukrainian President Volodymyr Zelenskyy, said that he is figuring out a solution to end the war. Furthermore, he added that Russian President Vladimir Putin is willing to meet to end the war.

The Dollar Index trades near 100.70, its highest level since late July. It has climbed through five straight sessions of falling Crude Oil, the opposite of how the war has moved it for most of this year. The Fed is the reason.