eFXdata reports that MUFG Research discusses the USD outlook in light of its strong performance in June.

"The US dollar strengthened further yesterday extending its advance in Jun... The dollar index strengthened by 2.9% in June in what was its best monthly performance since November 2016 when Donald Trump was elected President... The key trigger for the turnaround in the US dollar has been the hawkish shift in the Fed’s policy stance."

"We anticipate that the US dollar and US yields will become more sensitive to the US data releases. A key first test will be the latest non-farm payrolls report on Friday, especially given the Fed leadership have since reiterated that they want see the labour market return closer to full employment before beginning to seriously consider raising rates. Like in previous months market participants are going into Friday’s NFP report in anticipation that it could show much stronger employment growth of closer to 1 million job gains in June."