📝See Dollar Strength In The Near-Term: BMO FX Strategy

The dollar could strengthen in the near-term as the Federal Reserve raises interest rates further, risk aversion supports safe haven assets and U.S. energy independence shields the country from higher oil prices. In terms of broad USD index outlook, we would project the USD roughly 2% higher than today on a one-month horizon, with a similar return on a three-month horizon. Looking past that, we think the USD will begin to fade lower, but we don't expect the reversal to be an easy one to trade. Expect volatility in dollar crosses. - BMO FX Strategy