US dollar still has chance to surge

The US dollar is maintaining the best performance across the board. Economists forecast that the next phase of US dollar’s resilience will be less linear than it has been in 2022.

In the light of Thursday’s CPI reading, Fed has to keep going at 75 bps increases and the US dollar has chance to continue as the best versus rivals.

There is need to witness few months of moderation in core MoM CPI, before the US dollar’ flexibility could be affected.

Markets have anticipated that there will be need at least 2-3 months of evidence of slowing momentum. Thursday’s data confirms that this condition will not be satisfied during 2022, and the situation could continue through the first quarter of 2023.