The dollar’s renewed strength in recent weeks marks a tactical repricing—driven by improved sentiment around U.S. policy and trade—but broader macro uncertainty and overextension leave its longer-term downtrend intact. Safe-haven and Scandinavian currencies outperformed, while commodity-sensitive FX underperformed on the back of dovish central banks. The EUR, JPY, and CHF continue to benefit from diversification flows (see our May edition), GBP held up better than expected amid structural challenges, and CAD remains relatively resilient in a shifting global landscape.
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