The dollar is pushing toward the top of its 11-month range, and three main factors are behind it:
• Investors are moving into the dollar for safety as geopolitical tensions rise
• Stronger oil prices are naturally boosting USD demand since oil is priced in dollars
• Expectations around the Fed have shifted to “higher for longer” rather than rate cuts
With overall risk appetite fading and US rates likely to stay elevated, the dollar is finding support across the board while other currencies lag behind.
Do you think the dollar still has room to run, or is this move starting to look stretched?