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Bank of America: The Dollar's Safe-Haven Appeal Is in Full Swing, Pushing the Nonfarm Payrolls Report into the Background
Svmuu News: The U.S. dollar is having its best week in over a year, strengthening as the ultimate safe-haven asset amid conflict in the Middle East and soaring oil prices. As of this writing, the spot U.S. Dollar Index has risen 1.5% this week, marking its largest gain since late 2024.Hostilities are disrupting crude oil production and shipping and heightening inflation concerns at the Federal Reserve and other central banks. This has led traders to scale back bets on interest rate cuts by the Federal Reserve, further boosting the dollar. Complicating the economic picture, a report on Friday showed that U.S. employers unexpectedly cut jobs last month.However, with the focus largely on energy prices, the data only briefly weighed on the dollar, which quickly resumed its upward trend, while the benchmark 10-year Treasury yield climbed for the fifth consecutive day. Alex Cohen, a foreign exchange strategist at Bank of America, said: “'In this environment, the market is looking past the weak data, as ongoing uncertainty and record-high oil prices are the overwhelming dominant drivers.' (Jin Shi)
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