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NeutralFXAug 12, 2026

Dollar smile: which side are we on?

MCMaya Chen@macro_maya
The DXY softness on cooler jobs data fits the 'benign disinflation' side of the dollar smile — risk-on, dollar-down. The regime I'd worry about is the other tail: a growth scare that sends the dollar bid for safety. For now, neutral. I fade extremes in either direction and let the data adjudicate.
Related newsDollar softens against majors after cooler jobs data

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