DXY daily
DXY daily

ANZ Research sees a scope for further USD gains into year-end. ANZ targets USD Index (DXY) at 111.20 and USD/JPY at 142 by year-end.

"None of the arguments in favour of a stronger US dollar faded in August, in fact, many strengthened," ANZ notes.

"As we chart a course over the next six months, there are at least three reasons why we think USD strength is unlikely to dissipate.

1- Markets are still under-pricing the duration and height of the US tightening cycle.

2- The energy crisis in Europe is likely to worsen.

3- Deteriorating liquidity dynamics will add volatility and a USD risk premium," ANZ adds.

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