BBH: dollar 'fundamentally attractive' compared to major currencies
The fundamental outlook for the U.S. dollar remains favorable compared to other major world currencies, said Brown Brothers Harriman. As of 8:03 a.m. EDT, the spot dollar index was up 0.625 point to 99.512. “The euro is lower after failing once again to break above the $1.10 area, while sterling was turned back just ahead of its 200-day moving average near $1.2655 and is trading lower,” BBH said. The greenback has also firmed against the Japanese yen. “We remain constructive on the dollar and hold to the view that after some near-term underperformance after Fed widened QE [quantitative easing], it remains fundamentally attractive compared to the major currencies.” Metals traders closely monitor dollar moves, as base and precious metals alike tend to move inversely to the U.S. currency.