Instead, it’s that by contrast to major global central banks, the Fed looks positively hawkish.
Even the Bank of Japan, an outlier in hiking rates when its peers are cutting or standing by to cut, came across as dovish last week by kicking a decision on quantitative tightening to its July meeting.
The Bank of England now looks poised to start cutting in August, and the Swiss National Bank is setting the pace with two consecutive reductions.
The dollar’s surge against major currency rivals on Thursday was enough to put it on course for a third straight winning week, but only barely.
A host of data releases over the European day could easily swing the pendulum. Britain, France, Germany and the euro area as a whole have flash PMI readings, and the UK sees retail sales as well, which could have benefitted from a warmer May.
