Our measure of the dollar, the Cable FX Macro Dollar Index <.RDDXY>, traded in losses as it headed into tier-1 data. Weakness reversed after the March CPI figures, and judging by the price action, it seems as if the market was expecting inflation to cool down
Dollar strength extended after the ECB rate decision, March PPI data, and a potential rise in geopolitical tensions. This saw our measure gaining 1.8% on the week, and an index constructed by Bloomberg posted a 1.3% rise. This 5-day performance in the dollar vs peers is not seen since September 2022
The Swedish krone led losses at 2.3%, the euro followed at 1.8%, and some high-beta currencies performed relatively better as the kiwi lost 1.2% vs the dollar
The <.RDDXY> is now recording fresh YTD highs, at 313.677, this is the highest the dollar has been since early November
Comments