The US Dollar (USD) continues to emerge as the top performer among G10 currencies this year. Economists at Danske Bank analyze Greenback’s outlook.
Our USD-bullish argument, centred around markets scaling back on rate cut expectations, has essentially been exhausted. However, that does not make us more pessimistic about the USD in the near term.
We maintain our bias toward selling EUR/USD on rallies in the coming weeks.
Until something changes more materially, ongoing US data resilience and more cautious expectations for Fed cuts should continue to support the USD in the near term.