Having failed to retest its spring low in June, the US Dollar Index (DXY) has been edging higher in the past couple of weeks. Economists at Rabobank analyze USD outlook.

Fears of slower levels of global growth should prevent heavy selling pressure on the greenback

It has been our view for some time that USD strength would peak around the middle of this year and then lose some ground as the market looked ahead to Fed rate cuts in 2024. That said, fears of slower levels of global growth should prevent heavy selling pressure on the greenback.

If the market maintains its scepticism about the chances of tightening beyond July, the DXY is likely to continue to steer away from its spring low.