Brown Brothers Harriman’s Elias Haddad notes the Dollar Index is trading defensively just below the top of its long-held 96.00–100.00 range, even as US assets benefit from optimism after the US-Iran peace agreement. The bank still sees scope for DXY to overshoot this range in coming months, supported by US-G6 yield differentials and US economic outperformance.

Dollar index holds near key range

"The dollar index (DXY) is trading on the defensive just below the top of its 96.00-100.00 range that has held for more than a year."

"We see scope for DXY to overshoot that range in the coming months."

"US-G6 two-year bond yields are consistent with DXY trading closer to 102.00 and US economic outperformance should keep rate differentials supportive of the dollar."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)