The Dollar DisconnectThe dollar should arguably be much higher right now. US growth and labor data keep outperforming, oil should favor the USD, and Fed expectations keep repricing higher. Yet DXY has barely moved since the Iran conflict escalated.Markets still believe the Strait of Hormuz eventually reopens. But the longer negotiations drag on, the harder it becomes to ignore US macro outperformance.
Markets Still Refuse To Believe In King Dollar
China macro keeps deteriorating, Fed expectations keep repricing higher, and USD sentiment looks washed out again. The dollar trade may not be dead after all.










