Dollar benefits from the struggles among its peers

In case you missed it, Eamonn had the post on Waller (and a good summary of others) earlier here. That is one contributing factor to the dollar’s nudge higher so far today. But there also several other reasons plaguing other major currencies, helping to prop up the dollar inadvertently.

The euro continues to see rather weak economic data with an ECB rate cut in June almost a given now. Meanwhile, the yen is struggling post-BOJ despite Tokyo’s best efforts to try and stem the bleeding. The franc is returning to its funding currency status as the SNB leads the rate cut race. The loonie is also not faring too much better on softer inflation numbers, perhaps seeing the BOC act quicker. Then, we have the aussie and kiwi getting dragged into the mud by the Chinese yuan’s fall this week.

Yada, yada. The cleanest shirt among the dirty laundry again, the dollar that is. Or at least one can argue it that way.

How ironic it is that we can use this meme again this year. 😜

This article was written by Justin Low at www.forexlive.com.