The dollar appears to have started the week on a strong footing, again. In the opinion of economists at ING, more strength is possible.

Global risk aversion and recession fears to remain in place in the near term

“We don’t expect the Federal Reserve narrative to turn much less supportive for the dollar over the summer. The other major drivers of dollar strength; global risk aversion and recession fears, also look likely to remain in place in the near term.”

“We think the overall message for markets is that further aggressive tightening from the Fed remains warranted, which should consolidate a supportive underlying narrative for the dollar.”

“DXY may easily find its way above 108.00 this week.”