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Dollar holds firm as gains track 2-year yield spreads
Scotiabank says DXY rose since early September in tandem with spot movement against its fair-value estimate tied to 2-year spreads.
FXStreet, citing Scotiabank’s Global FX Strategy team, said the US dollar has stayed broadly supported versus most G10 currencies, with the focus on oil, US yields, and the Federal Reserve rate path.
Scotiabank’s analysts pointed to the DXY, saying gains since early September have been fundamentally driven by 2-year yield spreads, with spot largely moving in line with their fair value estimate based on those spreads.
They said the 2-year spread figure is at 100.5, compared with the DXY trading just above 101, according to the note cited by FXStreet.