Strong data supports the status quo. Therefore, economists at Commerzbank expect the US dollar to remain strong as the Federal Reserve is set to retain a hawkish stance.

Nothing to stop dollar-strength

“The market is therefore now expecting that the Fed will hike its rates significantly over the coming months and will then keep them at these levels for a longer period.”

“The US economy and/or US inflation would probably have to weaken significantly over a short period of time for the Fed to sound less hawkish, a development that seems rather unlikely. That means there is little to prevent dollar strength at present.”