We expect the US dollar to continue to edge higher

Stronger-than-expected data out of the US have pushed up US yields more than elsewhere and drove the greenback higher against most currencies for the first time since its cyclical peak in October of last year. While US economic resilience may keep the greenbacks strong in the near term, we still think that recessions in most advanced economies and souring appetite for risk will ultimately be the factor that pushes the dollar back towards its cyclical high later this year.