News Snapshot:
The U.S. dollar’s strength has been unrelenting, with the trade-weighted dollar index at its highest level since March 2020 and up 8.4% year-to-date. This can be traced to: i) the risk-off environment in financial markets, which has seen the U.S. dollar benefit as a safe haven; and ii) the Fed’s aggressive tightening cycle, leading to positive interest rate differentials, which in turn have supported the greenback. Looking ahead, we expect the lagged impact of the U.S. dollar’s advance will exert a meaningful drag on corporate earnings, serving as a key headwind for stocks. Since the start of the year, we...
