US Dollar to remain well supported – MUFG

The US Dollar was the top performing G10 currency on Tuesday. Economists at MUFG Bank analyze Greenback’s outlook.

A much higher-than-expected CPI print would pressure global equity markets further lower

In this global backdrop, it is highly likely that the US Dollar will remain well supported. 

If risk aversion intensifies again today and into the US CPI data on Thursday, a worst-case scenario would be for a much higher-than-expected CPI print that would likely pressure global equity markets further lower. To us, a much stronger CPI print seems unlikely with rental disinflation only just about to unfold.