The Currency Exchange · 2026-05-29 · 14 min
This week on Currency Exchange, Eimear Daly and Brian Daingerfield step back from the day-to-day market headlines to focus on what global FX clients are thinking about the US dollar, geopolitical risk and the broader macro outlook. Against a backdrop of rapidly shifting developments in the Middle East, the discussion explores why conviction across FX markets remains unusually low, how investors are positioning across G10 currencies, and what themes are emerging in China and broader emerging markets. Key themes discussed FX markets: Low conviction and headline-driven trading Brian Dangerfield explains why fast-moving geopolitical developments are preventing investors from taking strong directional positions in FX, despite large moves in rates and commodities markets. Dollar outlook: Fed on hold versus global tightening How markets increasingly expect the Fed to remain sidelined while other central banks continue tightening policy, potentially weighing on the dollar over time.
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