U.S. dollar's rise is not a trend change but a positioning adjustment: BBH
(Kitco News) The recent rise in the U.S. dollar is not a trend change but a simple positioning adjustment, writes BBH Global Currency Strategy. “The dollar continues to edge higher. DXY broke above the key 94 area and is traded today at the highest level since July 24. While it has retraced over a third of the drop from the June 30 peak, DXY has only retraced about a quarter of the drop from the March 20 peak,” BBH says. However, despite this week’s advance, weaker U.S. dollar trend will resume. “We continue to view this dollar move as a positioning adjustment rather than a trend change. The broad-based weak dollar trend should eventually resume as we remain negative on the dollar due to the now-familiar combination of an ultra-dovish Fed and softening U.S. economic data,” BBH adds.