Everything you need to know about the Dollar

US dollar credit supply: Supply continues at strong levels

The ongoing strength in US dollar credit supply signals persistent demand for dollar-denominated assets, even as levels normalize from March's peaks. This trend suggests that while there may be some cooling from the immediate surge, the underlying demand remains robust, which plays into broader themes of dollar liquidity in the global financial system.

Broad Dollar Weakness

FX Daily: More bond fuel for the dollar rally

The desk hinges its outlook on the burgeoning momentum for the dollar, propelled by fresh signs of bond market strength. Per the full note from ING Economics, the recent uptick in U.S. Treasury yields acts as an undercurrent driving investors towards the dollar. This sentiment correlates with broader market trends indicating that higher yields typically support dollar demand. As we venture forward, the lack of high-impact events on the calendar signifies that any movement in the dollar will likely stem from ongoing bond market trends and not immediate data catalysts.

MUFG: Dollar set to extend gains as Warsh Fed signals hawkish shift on inflation

The desk believes that the US dollar will continue its upward trajectory, supported by recent hawkish signals from the Federal Reserve and stronger-than-expected inflation data. Per the full note from MUFG, the dollar surged 1.4% last week, its most significant gain since the onset of the Iran conflict, driven by elevated CPI and PPI numbers and rising yields. The market is adjusting to the leadership transition at the Fed, with Kevin Warsh's upcoming remarks anticipated to play a crucial role in shaping expectations around future rate hikes, reinforcing the dollar's strength against potential market headwinds.