USD Index: The cyclical upswing will top-out around 110.00 – BBH

US economy is in a sweet spot. But how high can the USD go? Elias Haddad, Senior Markets Strategist at BBH, analyzes Greenback’s outlook.

Favourable US macroeconomic outlook bodes well for USD over the next three to six months

The favourable US macroeconomic outlook bodes well for US Dollar (USD) over the next three to six months. 

But headwinds from reserve managers ongoing portfolio diversification away from Dollar assets and the neutral US monetary/fiscal mix suggest the cyclical upswing in the US Dollar Index (DXY) will top-out around 110.00.