Dollar Strengthens as US Policy Supports Flows Amid Global Energy Crisis

Societe Generale's Kit Juckes believes recent US policy proposals are bolstering the Dollar's stronger profile. He points out that the Federal Reserve's interest rate hikes have rendered talking down the Dollar ineffective.

The analyst notes that higher US yields are driving capital inflows, which will continue to support the Dollar until growth begins to slow. Juckes suggests that the global energy crisis may actually shield the US from significant economic downturn before it affects Europe.

In this context, the analyst expects the Dollar to remain strong, and any weak NFP report would only provide a more attractive entry point for long-dollar positions.