Bloomberg Dollar Spot Index Traders are showing signs of optimism about the U.S. dollar, betting on a possible rebound after its recent slide. This change in sentiment suggests the currency might recover in the near future. Image: Bloomberg
MSCI Ex-US Developed World Stock Price Index Relative to MSCI US Stock Price Index vs. US Real Dollar Index There is often an inverse relationship between the U.S. dollar and international stock markets, meaning that a peak in the dollar could make international stocks more appealing to investors. Image: Paulsen Perspectives
Gold Prices in 2024 U.S. Dollars The real (inflation-adjusted) price of gold has reached a new all-time high, driven by several factors including U.S. tariff uncertainties, geopolitical tensions, and increased demand from global central banks. Image: Deutsche Bank
10-Year U.S. Treasury Yield vs. U.S. Dollar Index (DXY) While the strong relationship between U.S. Treasury yields and the dollar has lasted for over a year, investors should remain aware that market dynamics can shift rapidly. Image: Morgan Stanley Research
DXY U.S. Dollar Index vs. Nasdaq Composite / MSCI World Value Over the past two years, U.S. growth stocks—known for their sensitivity to currency fluctuations—have exhibited a strong correlation with the U.S. dollar. Image: Gavekal, Macrobond
Euro to U.S. Dollar (EUR/USD) The euro has shown strength this week, but caution is warranted. Potential shifts in U.S. trade policy under Trump and ongoing economic disparities continue to give the dollar an edge. Image: Bloomberg
MSCI World Performance vs. U.S. Dollar Index Typically, the relationship between the U.S. dollar’s strength and global equities is significant. A weaker U.S. dollar tends to support global equities, while a stronger dollar generally puts downward pressure on them. Image: J.P. Morgan
U.S. Broad Trade-Weighted Dollar Index The U.S. dollar’s continued rise in Q4 2024 will likely remain a modest headwind to earnings growth, as it was in the previous two quarters. Image: Deutsche Bank Asset Allocation
U.S. Dollar Index Positioning The U.S. Dollar Index long positioning being in the 95th percentile indicates an extremely bullish sentiment towards the U.S. dollar, potentially indicating that it is overvalued. Image: Morgan Stanley Research
Change in U.S. Dollar vs. Change in S&P 500 EPS While there are instances where the U.S. Dollar and S&P 500 EPS may move in tandem, the overall statistical relationship is weak. Image: Morgan Stanley Research
Bloomberg Dollar Spot Index and USD Bets Leveraged Funds Investors, particularly hedge funds, are showing a strong bullish sentiment towards the U.S. dollar, with positioning now at its highest level since January 2019, while Goldman’s strategists anticipate potential further dollar strength. Image: Bloomberg