Dollar rally continues as Jackson Hole approaches

The US dollar has risen sharply this week, reaching its highest level of the year as continued fears about the spread of the “delta” variant and further evidence of growing risks in China (around its economic slowdown, the widening regulatory crackdown on major tech firms, and concerns about its opaque financial system) have weighed on risk appetite and increased demand for safe havens. While we continue to forecast a robust economic recovery, the near-term risks in financial markets appear skewed to the downside, which may well continue to support the greenback.
Jonas Goltermann Senior Markets Economist
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FX Markets Weekly Wrap

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What would it take to generate a much stronger US dollar?

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