Economists at Rabobank see the risks as being titled towards a firmer for longer USD in the coming months. 

King Dollar (again)?

“In the near-term, the releases of US payrolls and CPI inflation data are likely to be instrumental in guiding the direction of the USD. However, the risks that inflation could prove sticky suggests that the higher for longer interest rate theme could persist for months.”

“We maintain our three-month forecast of EUR/USD 1.05 and continue to see risk of a dip to EUR/USD 1.03 on a six-month view.” 

“We see risk of Cable moving to 1.16 on a six-month view.”

“We are forecasting AUD/USD holding close to 0.66 in the coming months with downside risk to this view.”