King dollar 2.0
DXY has parked "up here" and refuses coming down over past weeks. The upside remains the main pain trade when it comes to the dollar. Nordea writes;
"When core inflation surprises to the upside in the US but to the downside in the Euro area, it simply leads to a wider gap policy wise between the Fed and the ECB after a time-lag. This seems likely for H2-2021 as well, in particular now that Lagarde has openly hinted that the ECB forward guidance will be solidified already next week."
"When core inflation surprises to the upside in the US but to the downside in the Euro area, it simply leads to a wider gap policy wise between the Fed and the ECB after a time-lag. This seems likely for H2-2021 as well, in particular now that Lagarde has openly hinted that the ECB forward guidance will be solidified already next week."