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Morgan Stanley:

  • "Further USD strength into the summer: We expect modest but broad-based strength to continue, with the DXY reaching 105 by 3Q22, fueled by North American economic outperformance and pessimism in Asia and Europe. CAD and USD outperform while the Antipodeans lead the laggards," MS notes.
  • "A USD downturn into 2023: Nothing gets worse forever; overly pessimistic expectations meet central bankers increasingly prioritizing growth over slowing inflation pressures. European high-beta currencies lead the charge versus USD and low yielders," MS adds.

Yep, rumours of the death of USD were greatly exaggerated ....

usd index 13 May 2022