The primary driver of US greenback energy over the previous variety of years was ‘US exceptionalism’. That is meant stronger development and better US rates of interest.
The stronger development narrative continues to be in place — even when it requires a deficit at 7% of GDP — however Fed Chairman Jerome Powell has deconstructed the second a part of narrative. His feedback counsel the Fed will not tolerate an increase above 4.4% and that the FOMC plans to chop charges even with robust development.
That is prompted a re-think out there and a few broad softening of the US greenback (at the least till right now).
DXY weekly
