Dollar Index Recoupling with Rates, Says Societe Generale

Societe Generale strategist Kit Juckes observes that the US Dollar Index is recoupling with interest rates, moving in close tandem with EUR/USD. He points out that President Trump's policies have exerted a weakening influence on the Dollar, causing it to underperform relative to what underlying economic and monetary fundamentals would suggest.

Juckes' analysis underscores a shift in the Dollar's behavior, as it aligns more closely with rate differentials rather than acting as a safe-haven or growth proxy. The recoupling implies that interest rate expectations are now the primary driver for the greenback, potentially overriding other macro factors.