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24 May 2024

Dollar Cruises Toward Weekly Gain on Fading Easing Expectations

With a long weekend ahead, the dollar looks set to consolidate its biggest weekly advance since early April as markets capitulate in the face of hotter-than-expected US growth data and a more hawkish Federal Reserve. The greenback is down slightly in early trade against all of its major counterparts – other than the yen – but remains roughly half a percent stronger on the week, two-year Treasury yields are up a little more than 2 percent, and equity futures are steadily giving back Wednesday’s gains ahead of the North American open. Defying our expectations, the US economic activity accelerated in...

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