U.S. dollar's rise is not a trend change but a positioning adjustment

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3 years ago

The ongoing ascent in the U.S. dollar isn't a pattern change yet a straightforward situating alteration, composes BBH Global Currency Strategy. "The dollar keeps on edging higher. DXY broke over the key 94 territory and is exchanged today at the most elevated level since July 24. While it has backtracked over 33% of the drop from the June 30 pinnacle, DXY has just followed about a fourth of the drop from the March 20 pinnacle," BBH says. Nonetheless, notwithstanding the current week's development, more fragile U.S. dollar pattern will continue. "We keep on survey this dollar move as a situating alteration as opposed to a pattern change. The wide based frail dollar pattern ought to in the long run continue as we stay negative on the dollar because of the now-natural blend of a super hesitant Fed and relaxing U.S. financial information," BBH includes.

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