US Dollar rally should continue this week on signs of persistent inflation – BBH

Source Fxstreet

Analysts at BBH note that the US Dollar is trading softer ahead of Wednesday's inflation data.

Dollar rally should continue this week

"DXY is trading lower for the second straight day near 104.032.  The euro is trading higher near $1.0870 while sterling is trading higher near $1.2685.  USD/JPY is trading lower near 151.80 after being unable to break above the 152 area on continued jawboning."

"The dollar rally should continue this week on signs of persistent inflation and robust growth in the US.  The US data continue to come in mostly firmer and should keep upward pressure on US yields.  We believe that while market easing expectations have adjusted somewhat already, there is still room to go. When the market finally capitulates on the Fed, the dollar should gain further."

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