The US Dollar Index (DXY) surged above the 105 level. Economists at Westpac expect DXY to race higher towards 107.

DXY to continue its ascent

“An aggressively risk-averse climate, on the heels of another strong CPI and record low consumer sentiment reading late last week, should see the DXY continuing its ascent.”

“DXY is breaking out sooner than expected but we wouldn’t fight this move, especially into this week’s FOMC. Chair Powell and the FOMC will surely stick to their resolutely hawkish stance.”

“From here DXY can make a run at 107.”