The lack of follow-through for the dollar is disappointing – BBH

The dollar is softer as markets await fresh drivers. Economists at BBH maintain a strong dollar call but profess disappointment that it has not been able to move higher this week. 

Dollar soft as markets await fresh drivers

“Last week was an eventful one, one filled with hawkish Fed comments that were backed up by strong US data. Yet the dollar’s bounce has already run out of steam.” 

“For now, we are maintaining our strong dollar call and are chalking up recent price action to the start of the summer doldrums.”

“Tomorrow’s CPI data could shake things up, but we don’t see much risk of the readings impacting Fed policy.”