How high for DXY?

Thursday 23 February 2023

Barclays speculates on the push higher in DXY which is now deflating the global economy. I do not see DXY running to new highs but the Fed needs it to run hard nonetheless. US import prices jumped in January, signaling an end to the goods deflation and a higher dollar will help squash the stock market.

An unstable point for markets

But from here, this market pricing does not look like a stable equilibrium.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.