Economists at MUFG Bank expect to see more USD strength.

Global backdrop is set to remain Dollar supportive

The risk will come at the end of the week with Fed Chair Powell speaking at Jackson Hole. However, we see limited scope for the Fed to make a dovish pivot given the limited changes in the flow of data since the July FOMC meeting. 

We still expect to see a slowdown emerge but until we see some evidence of that emerging, the Dollar is set to remain well-supported. 

China's growth concerns and property market risks, which are unlikely to recede, mean the global backdrop is set to remain Dollar supportive as well