Wells Fargo: Dollar to remain strong through the end of 2022

Wells Fargo’s Analysts believe that the strength of the US dollar will continue through the end of 2022. They point out that despite a more aggressive pace of tightening from foreign central banks, they doubt international policymakers will be able to keep pace with the tightening cycle laid out by the Federal Reserve.

Key Quote:

“Despite a more aggressive pace of tightening from select international central banks, the Federal Reserve is still likely to lead the charge toward tighter monetary policy. In that sense, we continue to forecast a stronger U.S. dollar through the end of this year. That dollar strength should materialize as the Fed raises interest rates an expected 75 bps in September and continues to shrink its balance sheet.”