Has the dam burst for the dollar (and the yen)?

The US dollar has fallen for a third week in a row, with the DXY closing in on its weakest level so far this year. But, although it is increasingly challenged by the current “risk-on” environment, we are sticking to the view that the greenback will rebound later this year as the “higher for longer” pendulum swing back in favour of the US and advanced economies eventually slide into recession, boosting safe-haven demand.