The US dollar index is hedging lower during early Monday trading. However, the greenback remains close to the 20-year maximum reached earlier in the month, with a gain of more than 2% so far during the month of June. The outlook for the US currency remains tilted to the upside, as the Fed’s commitment to curb inflation, through monetary policy tightening, appears to be more solid than that of its peers, in a dynamic that is conducive to further dollar gains.
Also offering support to the American currency, is the growing likelihood of an economic recession, triggered by the withdrawal of stimulus; a scenario that increases demand for the relative safety of the dollar.
Ricardo Evangelista – Senior Analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.