TKL: Shocking stat of the day – The US dollar is trading ~23% above its fair value, marking the largest divergence on record, according to BofA.

TKL: Shocking stat of the day - The US dollar is trading ~23% above its fair value, marking the largest divergence on record, according to BofA.

Over this time, the US dollar index, DXY, has soared 21% to its highest level since November 2022.

The broader Bloomberg Dollar Spot Index, BBDXY, has increased 17% to its highest since November 2022.

In 2024 alone, these indices jumped 7% and 8%, respectively, as markets are priced-in higher for longer Fed policy.

The US Dollar is stronger than ever.

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