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Expectations Of A US Dollar Demise Are Premature

by Arthur Budaghyan, Head of CoreMacro  

The risk-reward of the US dollar is currently positive. If a US recession is not imminent, then US bond yields will move higher, thus supporting the greenback. If the US enters a recession soon, the US dollar will benefit because it is counter-cyclical. Besides, the US dollar has not been as weak as the DXY index suggests.

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