The US dollar looks poised to end the week stronger against most major currencies, with the DXY Index on track for its biggest weekly rise since the index peaked in late September 2022. We think this partly reflects that many of the factors which have been weighing on the dollar have run their course; but we also think it is an early sign of investors’ appetite for risk souring. After all, fellow safe-haven currencies the Japanese yen and Swiss franc have also fared well, and the dollar reacted positively to today’s University of Michigan survey data showing that consumer sentiment hit a six-month low in May.
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