Factors ranging from monetary-policy divergence to inflation trends indicate the dollar’s rally against its major peers during the past four months has scope to continue, according to Goldman Sachs Group Inc.
The U.S. Dollar Index posted its a 10th consecutive gain last week, the longest streak since 1967, and reached 85.485 today, the highest level since July 2010. It also still trades at almost its 10-year average, as measured by the Intercontinental Exchange Inc. gauge that tracks the greenback against the currencies of six U.S. trading partners.
“As big as the dollar move looks close up, it is actually small in historical and economic terms,” Robin Brooks, Goldman’s New York-based chief currency strategist, wrote in a note to clients today. In “reaction to client meetings in recent days, many have sticker shock at the recent strengthening in the dollar and are instinctively on the sidelines as they await/ hope for a pull-back,” he wrote.
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.