Economists at Wells Fargo expect to see further gains in the greenback, anticipating a peak in Q1-2023. 

US dollar has yet to reach its cyclical peak

“Our view remains for further gains in the trade-weighted US dollar, with a forecast cyclical peak in the greenback expected in Q1 2023.”

“Relative US economic resilience and ongoing Fed rate hikes, combined with unsettled global markets, are factors that should see the trade-weighted dollar gain around a further 4% over the next three to six months.”

“With US policy rates likely to remain elevated even in the face of US recession, we forecast only a modest softening in the greenback as 2023 progresses.”