The US dollar is ending the week higher against most currencies, extending its gains alongside rising US Treasury yields following the stronger-than-expected July payrolls data. With Fed officials earlier this week suggesting that several more months of strong economic data may be enough to start tapering asset purchases, next week’s US inflation data could reinforce expectations that policy normalisation may not be far off. Although we think that the pace of the economic recovery in the US will moderate in the coming quarters, our view is that the dollar will rally further as underlying growth and inflation in the US remain stronger than in most other major economies.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services