Crédit Agricole Corporate and Investment Bank
May 19, 2026
USD Exceptionalism Revisited
Daily UpdateFXRates Govt BondsCommoditiesInformation TechnologyEnergy
The report highlights a bullish outlook for the USD driven by sticky US inflation and Middle Eastern geopolitical risk, while JPY and AUD face headwinds from fiscal concerns and overstretched positioning.
Key Takeaways
- 1.The USD is expected to extend gains as a high-yielding safe-haven, supported by sticky US inflation, hawkish Fed rhetoric, and geopolitical tensions in the Middle East.
- 2.Rising oil prices due to the Strait of Hormuz closure are pressuring global bond markets and risk sentiment while supporting energy prices.
- 3.JPY is facing downward pressure from rising energy costs and growing fiscal sustainability concerns as JGB yields rocket higher.
Table of Contents
- Asia overnight
- USD: exceptionalism revisited
- CHF: stagnant will do now
- Latest publications
- JPY: fiscal sustainability concerns adding weight
- AUD: back to being a risk
- Open trade recommendations
- Key events
- FX Research advanced tools
- Red Mount Analytics
- Global Markets Research contact details
- Certification
- Disclaimer
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Authors
Valentin MarinovDavid ForresterAlexandre Dolci
Securities
AUDUSDUSDJPYEURJPYES1
Themes
Strait of Hormuz Geopolitical TensionUSD ExceptionalismFiscal Sustainability Concerns
Regions
North AmericaAsia PacificEuropeUnited StatesJapanAustralia