US Dollar Index (DXY) forward progress remains inconsistent despite ongoing waves of fiercely hawkish Fedspeak and an aggressive front-loaded rate hike profile. According to analysts at Westpac, DXY could test lower levels near-term but a move above 100 is on the cards in coming weeks.

Weakness should prove fleeting with the Fed sticking resolutely to a hawkish path

“DXY could test lower levels near term if momentum toward de-escalation in Ukraine continues, but weakness should prove fleeting with the Fed sticking resolutely to a hawkish path.”

“DXY 100+ on the cards in coming weeks.”