$DXY at a key level: the dollar could reclaim its role as a safe

DXY is currently at a key level.

Historically, when markets enter a phase of euphoria and everything rises simultaneously — SPX equities, GOLD gold, BTCUSD crypto — the dollar tends to reassert itself as a safe-haven asset.

With major indices and technical indicators showing overbought conditions, and employment data beginning to weaken, a flight to safety into DXY over the coming months wouldn’t be surprising.

Moreover, the rate spread between the U.S. and Europe remains wide: the US10Y 10-year Treasury hovers around 4.3%, while the DE10Y German Bund stays near 2.3%.
This gap continues to attract capital flows toward dollar-denominated assets, reinforcing the greenback’s appeal even amid expectations of moderate rate cuts in 2025.

In our view, it’s worth holding liquidity and/or equivalents over the next few years to seize potential opportunities from a market crash or sell-off should the FED be forced to cut rates in the current environment of economic slowdown.