The first six months of 2022 have been marked by the dominance of the dollar. In the new quarter, economists at ING expect to see the same old dollar strength.

USD still in demand

“Our view remains that the dollar should continue to count on a rather solid floor in the third quarter thanks to the Fed’s front-loaded rate hikes and a still challenging environment for global risk assets due to tighter liquidity and fears of a global slowdown.”

“Some moderate dollar weakness may start to emerge in the fourth quarter when US rates peak.”