BNY: Dollar Trades in Risk-On Mode After US-Iran Strait of Hormuz Deal
BNY’s Bob Savage notes the US Dollar is trading in a broader risk-on environment following the US-Iran agreement to reopen the Strait of Hormuz, which eased energy supply fears. FX markets are focused on policy divergence, with the dollar’s trajectory being reassessed alongside the yen.
BNY’s Bob Savage says the US Dollar is trading within a broader risk-on environment after the US-Iran agreement to reopen the Strait of Hormuz eased concerns over energy supply disruptions.
FX markets remain highly sensitive to policy divergence, and the dollar’s trend is being reassessed alongside the Japanese yen. The note highlights that shifting rate expectations and risk appetite are key drivers for the greenback.
Source: FXStreet Forex News