The US economy is in a sweet spot. But how high can the USD go? Elias Haddad, Senior Markets Strategist at BBH, analyzes the outlook for the Greenback.
A favorable macroeconomic outlook in the US bodes well for the USD over the next three to six months
A favorable US macroeconomic outlook bodes well for the US dollar (USD) over the next three to six months.
But headwinds from reserve managers, continued portfolio diversification away from dollar assets and a neutral US monetary/fiscal mix suggest a cyclical rally in the US Dollar Index (DXY) to peak around 110.00.