The US dollar basket (DXY) is nearing its recent multi-month high, supported by a safe haven bid as risk markets remain wary of the ongoing spread of the delta covid variant and the potential impact it may have on global growth. As governments across the globe continue to unwind lockdown measures, the delta covid variant is spreading rapidly, adding fuel to the opinion that the easing of lockdown measures may be happening too quickly. Any re-imposition of lockdown measures will weigh heavily on already weakened economies, crimping growth prospects in the months ahead. The US dollar is a major beneficiary of a risk-off environment, along with the Swiss Franc and the Japanese Yen, and while this remains the case the greenback should continue to edge higher.
