
Elias Haddad at Brown Brothers Harriman argues the Dollar can keep benefiting from widening US-G6 rate differentials and higher US real yields. However, tightening by other major central banks limits policy divergence, suggesting the DXY index may struggle to sustain a break above its June 24 high at 101.80, even though US growth outperformance and foreign demand for US assets remain supportive.
"USD can continue to benefit from widening US-G6 interest rate differentials and rising US longer-term real yields."

"Still, tightening by other major central banks limits policy divergence with the Fed and suggests DXY could struggle to sustain an overshoot of its June 24 high at 101.80."
"Even so, US economic growth outperformance and strong foreign appetite for US securities can override that upside USD constraint."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)