Should you go LONG the USD?

Five reasons I’m going long the dollar:

1. Recent weakness
2. Tarrifs are overblown
3. AI won’t destroy as many jobs as we think
4. New Fed Chair
5. Renewed optimisim by consumers

There are solid reasons to be bullish on the U.S. dollar right now. The U.S. economy remains comparatively resilient, with stronger growth, productivity, and labor market dynamics than most other developed economies, which supports capital inflows. U.S. interest rates are still relatively high versus peers, keeping real yields attractive and reinforcing the dollar’s carry advantage even if rate cuts eventually come. In periods of global uncertainty, the USD continues to benefit from its unmatched role as the world’s primary reserve currency and safe haven, especially given the depth and liquidity of U.S. Treasury markets. On top of that, ongoing demand for dollars to service global trade, debt, and commodities provides steady structural support that few other currencies can match.