The US Dollar Index (DXY) is up for the fifth straight day and is coming off of its best week since March 2020. Economists at BBH note that the DXY could rally towards the 121 level on a break past the July 14 high near 109.294.

The dollar continues to strengthen

“DXY is trading at the highest since July 15 and it is on track to test the July 14 high near 109.294. After that, there really aren't any major chart points until the January 2002 high near 120.51 and the July 2001 high near 121.” 

“Can the dollar rally another 10% from current levels? Fundamentally, that seems hard to justify but stranger things have happened.”