Deutsche Bank: This oil shock is different from 2022 and may limit the strength of the US dollar.

Deutsche Bank said in an email to clients on Friday that the current round of oil price shocks and how they transmit to policy and capital flows are "quite different from 2022", and the current developments are "not necessarily dollar-positive". The bank's Global Head of FX Research, George Saravelos, wrote that during this crisis, interest rate differentials have not been moving in a direction favorable to the dollar, as central banks outside the US are considering tightening. The Bank of England, the Bank of Japan, the Riksbank, and the European Central Bank all signaled a hawkish tone in their press conferences this week.