US Dollar Index: Conflict-driven support and rate backdrop – BBH
The post US Dollar Index: Conflict-driven support and rate backdrop – BBH appeared on BitcoinEthereumNews.com. Brown Brothers Harriman’s (BBH) Elias Haddad notes that renewed Middle East tensions are pressuring stocks and bonds while supporting the US Dollar (USD) and Oil. Haddad sees the Dollar Index (DXY) edging higher, with US-G6 two-year yield spreads consistent with DXY slightly above 102.00 and US economic outperformance keeping rate differentials supportive for the Dollar ahead of the FOMC minutes. DXY supported by yields and risk “Re-escalation of the Middle East conflict is weighing on stocks and bonds. Crude oil prices surged and USD inched higher. “ “The US completed yesterday a new round of offensive strikes against Iran and revoked a waiver that allowed the sale of Iranian oil in response to Iran’s attacks on commercial vessels transiting the Strait of Hormuz.” “In our view, the dollar index (DXY) can edge higher. US-G6 two-year bond yields are consistent with DXY trading