The dollar is likely to remain well supported by expectations of further interest-rate rises by the Fed, according to ING.
The view reflects continued market bets that the U.S. central bank will keep tightening monetary policy. Higher expected U.S. rates tend to attract capital inflows, which can lift the dollar against other major currencies.
The analysis was reported by the Wall Street Journal's markets desk, which tracks currency and rate moves closely for investors. Traders and analysts watch Fed signals and economic data closely, since shifts in rate expectations can quickly change currency valuations.
Whether the dollar's strength persists will depend on how incoming data shapes the Fed's next steps. For now, the prevailing expectation among these analysts is that rate-rise bets will continue to underpin the currency.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing