To discern the dollar’s next direction, keep an eye on the Stoxx 600 Index. European stock moves presaged the greenback’s rallies in September 2017 and April this year, while following the currency lower over January and February.
Today’s holiday across the continent means European equities may be delayed in their response to the tariff news. But generally, their continued recovery from last quarter’s decline may imply dollar-friendly forces are at play in global markets.
Source: Bloomberg Pro Terminal