Yesterday’s small correction in the dollar proved very short-lived. This is not surprising, as most drivers of dollar strength have indeed remained intact. Markets have pushed their peak Fed rate expectations to the 5.0% mark, and UST 2-year yields are inching closer to 4.60%. This rate environment continues to shed doubts about the sustainability of any rally in equities, and chances that the dollar will receive more safe-haven flows are elevated.

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