Brown Brothers Harriman’s (BBH) Elias Haddad notes the Dollar has extended its broad gains to a 19‑month high as Fed funds rate hike expectations push Treasury yields higher.
ING’s Chris Turner highlights a strong, macro-driven rally in the Dollar as markets price back-to-back Federal Reserve hikes in December and January, totaling around 85bp of tightening.
MUFG’s Derek Halpenny notes the US Dollar consolidating at new highs above 103 on DXY, supported by a sharp 2-year UST yield move and rising risk aversion linked to poor tech sentiment and a global Microsoft outage.
TD Securities’ FX team, led by Jayati Bharadwaj and Howard Du, expects the US Dollar to remain firm as Fed rate expectations rise.
The US Dollar Index (DXY) trades firmly against its major currency peers during the European trading session on Friday, hovering near its 19-month high of 103.24 posted the previous day.
Dow Jones futures decline 0.15% to trade around 52,310 during the European hours on Friday. Meanwhile, S&P 500 futures decline 0.16% to trade near 7,600, and Nasdaq 100 futures fall 0.30% to trade around 28,300.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, enters a bullish consolidation phase on Friday as bulls pause for a breather following a strong three-day rally to the highest level since April 2025, touched the previous day.
National Bank of Canada strategists Stéfane Marion and Kyle Dahms note that the Dollar remains underpinned by persistent U.S. inflation and expectations of further Federal Reserve tightening.
The US Dollar (USD) has extended its upward trajectory across global foreign exchange markets, propelling the US Dollar Index (DXY) to a fresh year-to-date high of 103.08 and returning the currency to its April 2025 levels.
Brown Brothers Harriman’s (BBH) Elias Haddad notes the Dollar Index has retreated from its post-October CPI highs, with the USD rally seen as stretched versus rate differentials. He highlights that stagnant US real wages may cap expectations for a 50bps Fed hike in December.
The US Dollar Index (DXY) has reversed previous daily gains, returning to levels below 103.00 after hitting fresh 19-month highs at 103.08 earlier in the day.
MUFG’s Lee Hardman highlights that the US Dollar has extended gains, pushing the Dollar Index to a fresh year-to-date high as markets price a faster pace of Federal Reserve rate hikes.
ING strategists led by Francesco Pesole note the Dollar’s rally is driven by hawkish Federal Reserve rhetoric and stronger US inflation, pushing DXY back to April 2025 levels. They stress this is a rates-driven move, with real front-end differentials supporting Dollar momentum. The team continues to see upside risks in coming days, with PPI flagged as a potential catalyst for another USD leg higher.
Dow Jones futures remain steady around 52,580 during the European hours on Thursday. Meanwhile, S&P 500 futures decline 0.43% to trade around 7,610, and Nasdaq 100 futures fall 0.92% to trade around 28,210.
Deutsche Bank’s Jim Reid and colleagues highlight that Fed funds futures shifted in a more hawkish direction after the CPI release, lifting expectations for future rate hikes.
The US Dollar (USD) outperforms its major currency peers, except the Japanese Yen (JPY), on Thursday, amid fears that the Federal Reserve (Fed) could turn aggressive on its current monetary tightening cycle to contain elevated inflationary pressures.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, hits a fresh high since April 2025 during the Asian session on Thursday, with bulls looking to build on the momentum beyond the 103.00 mark.
Rabobank’s FX Strategy team argues that reduced fears of political interference at the Federal Reserve and evidence of renewed safe-haven demand support the Dollar. The bank notes that concerns over the US budget deficit and treasury market stresses could weigh on the Dollar over the medium term, but concludes that last year’s Dollar debasement fears were exaggerated.
The more artificial intelligence (AI) a US index holds, the more of the fall that began on November 5 it has now recovered. The NASDAQ 100 touched just under 28,600, above where it started that session, and is trading near 28,400.
The US Dollar Index (DXY) rises for a second straight day on Wednesday, hitting a fresh year-to-date high as hotter-than-expected US consumer inflation and calls from Federal Reserve (Fed) officials for further tightening fuel bets on more aggressive rate hikes.
Rabobank’s FX Strategy team argues that reduced fears of political interference at the Federal Reserve (Fed) and evidence of renewed safe-haven demand support the US Dollar (USD).
Societe Generale’s Kit Juckes argues that despite potential future US fiscal tightening and greater AI regulation, current data show a resilient US economy. Core CPI has risen steadily, with headline CPI up 1% over two months, alongside strong payrolls, retail sales and GDP.
The US Dollar (USD) outperforms its major currency peers on Wednesday, as financial markets have started anticipating a bigger Federal Reserve (Fed) interest rate hike at the December policy meeting.
MUFG’s Derek Halpenny notes that a sharp rise in the 2-year UST yield, driven by stronger US CPI and hawkish comments from Fed Governor Waller, has revived speculation of a 50bp FOMC hike.
ING’s Chris Turner notes the Dollar is trading near this year’s highs after another hot US inflation print and hawkish comments from Fed member Chris Waller. ING argues that bearish yield curve flattening typically supports the Dollar versus procyclical currencies.
Dow Jones futures gain 0.16% to trade around 52,400 during the European hours on Wednesday. Meanwhile, S&P 500 futures advance 0.60% to trade around 7,590 and Nasdaq 100 futures rise 1.45% to trade around 28,230.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the second successive day and trading near 102.40 during the European hours on Wednesday.
Rabobank’s RaboResearch Global Economics & Markets team highlights that hotter-than-expected US CPI has pushed US 2-year and 10-year yields sharply higher, reviving talk of a possible 50 bps Federal Reserve hike. The report links the move to renewed inflation pressures in groceries, housing and services, and notes that this comes just after investors had rushed back into Treasuries.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after registering over 0.5% gains in the previous day and trading around 102.20 during Asian hours on Wednesday.
About a sixth of Monday's rebound is gone from all three US stock indexes after a hot October Consumer Price Index (CPI) and talk of a half-point Fed hike. The Nasdaq 100 gave back about half of Monday's gain, hitting a session low just above 27,400, and is now back near 27,750.