The Macro Brief: Fed-ECB Policy & Rate Differentials Driven The $DXY Through 100
Where Macro Meet Markets
The DXY is approaching 100 for the first time since the peak of Covid, effectively reversing all of losses “due to” the record amount of easing done by the Federal Reserve.
The move higher is the result of a confluence of factors, primarily the move in real yields driven by expected quantitative tightening and pricing in rate hikes by the FED.