MUFG analysts Lin Li, Michael Wan, Lloyd Chan and Khang Sek Lee argue that firmer US inflation and resilient labour markets underpin a higher-for-longer global rates backdrop, supporting the US Dollar.

Brown Brothers Harriman’s Elias Haddad notes that the positive shift in US-Iran relations initially weighed on the US Dollar (USD), but he still expects the USD to edge higher near term.

The US Dollar (USD) retraces gains on Friday amid a brighter market mood.

Nomura’s Dominic Bunning and colleagues note that while the Dollar bull case remains supported by strong US data, higher Fed rate expectations and robust US equities, historical patterns around US data surprises point to downside risks for USD over the next few months.

Deutsche Bank strategists note a strong rally in US equities, with the S&P 500 posting its largest gain in two months as falling Oil prices and reduced Fed hike expectations improved the near-term outlook.

Dow Jones futures remain steady around 50,880 during the European hours on Friday, ahead of the US regular opening. However, S&P 500 futures inch lower 0.09% to near 7,390, and Nasdaq 100 futures lose 0.29 %, trading near 29,380 at the time of writing.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding gains after registering modest losses in the previous day and trading around 99.80 during the early European hours on Friday.

The US Dollar Index (DXY), which measures the Greenback's value against a basket of six major currencies, trims earlier gains on Thursday after US President Donald Trump said he had cancelled scheduled strikes and bombings against Iran planned for Thursday evening.

After Wednesday's near 2% drubbing, the Dow Jones Industrial Average (DJIA) spent Thursday doing something stranger than falling: very little.

United States (US) President Donald Trump said on Thursday that negotiations with Iran remain ongoing but warned of further military action, stating that additional strikes are expected later in the day. Trump made these statements in a Fox News interview.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the US Dollar (USD) is firm as United States (US) data show stalled disinflation and sticky inflation measures drifting away from the Federal Reserve’s (Fed) 2% target.

TD Securities strategists note that a softer core United Kingdom (UK) Consumer Price Index (CPI) print triggered initial US Dollar (USD) weakness, but they still expect the broad USD uptrend to remain supported into next week’s Federal Open Market Committee (FOMC) meeting.

The US Dollar (USD) claws back its slight early losses and edges higher during the European trading session amid intensifying fears that the ceasefire between the United States (US) and Iran, announced on April 8, could collapse due to the exchange of attacks in the last few days.

Dow Jones futures gain 0.61%, trading near 50,300 during the European hours on Thursday, ahead of the US regular opening. However, S&P 500 futures rise 0.67% to near 7,330, and Nasdaq 100 futures advance 1.03%, trading near 28,850 at the time of writing.

Deutsche Bank reports that global equities, led by the S&P 500 and NASDAQ, have fallen to one‑month lows as higher Oil prices and US‑Iran tensions revive stagflation concerns.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, edges lower during the Asian session on Thursday, stalling the overnight bounce from the vicinity of the weekly low.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding losses after registering minor gains in the previous day and trading around 100.00 during the Asian hours on Thursday.

The Dow Jones Industrial Average (DJIA) fell about 1.2% on Wednesday, a near 600-point slide that settled just under 50,250 after tagging session lows around 50,150.

TD Securities strategists note that a softer United States (US) core Consumer Price Index (CPI) print triggered only modest US Dollar (USD) weakness. They argue the broad USD uptrend remains in place, supported by strong payrolls and geopolitical tensions.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar retains upside risk as US inflation is expected to heat up in May and the disinflation trend has stalled.

Commerzbank’s Volkmar Baur argues that a major US technology IPO could generate sizeable foreign capital inflows, supporting the US Dollar, particularly against the Euro.

ING’s Chris Turner notes the Dollar is holding recent gains as markets await the US May CPI report, with expectations that firm core inflation will keep Federal Reserve hike pricing alive into December.

Dow Jones futures lose 0.30%, trading near 50,750 during the European hours on Wednesday, ahead of the US regular opening. However, S&P 500 futures fall 0.40% to near 7,360, and Nasdaq 100 futures decline 0.61%, trading near 28,950 at the time of writing.

The US Dollar (USD) is under pressure against its major currency peers during the European trading session on Wednesday. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is down 0.1% to near 99.90.

MUFG’s Lloyd Chan highlights that a potentially hotter US CPI print could reinforce expectations of higher-for-longer US interest rates, underpinning broad US Dollar strength.

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 100.00 during the Asian trading hours on Wednesday.

The United States Dollar Index (DXY) trims earlier losses on Tuesday as traders swing between optimism and caution over a potential US-Iran deal.

The Dow Jones Industrial Average (DJIA) spent Tuesday proving that a one-day bounce is not the same as a bottom.

MUFG’s Lee Hardman notes that the US Dollar has stalled after the Dollar Index met resistance near 100.00 as Middle East tensions between Iran and Israel eased and Oil prices retreated toward USD90.

The US Dollar (USD) underperforms its major currency peers during the European trading session on Tuesday, as renewed hopes of a permanent peace deal between the United States (US) and Iran have diminished its safe-haven demand.