ING Sees Cyclical Drivers Fuelling US Dollar Strength into Coming Months

ING strategists note that cyclical bullishness has taken over in foreign exchange markets, reasserting itself as the dominant driver for the US dollar. According to the bank, these cyclical factors will keep the dollar bid in the near term, delaying any meaningful downside.

The outlook suggests the greenback is poised to remain strong over the coming months, underpinned by economic momentum and interest rate dynamics that favour the dollar. No specific timeline or targets were provided in the note.