US Dollar Index: On track to test the July 14 high near 109.294 – BBH

The US dollar continues to gain as the new week begins. Economists at BBH expect the US Dollar Index (DXY) to test the July 14 high around 109.30.

Dollar to remains firm 

“DXY is up for the fourth straight day and is coming off of its best week since March 2020, trading near 108.17 currently. This is the highest since July 15 and it is on track to test the July 14 high near 109.294.”

“As risk-off impulses ebb, the dollar should continue to benefit from the relatively strong US economic outlook and heightened Fed tightening  expectations. These drivers are likely to persist this week, with Fed Chair Powell expected to deliver a hawkish message at Jackson Hole and eurozone PMIs expected to show further softness in August.”