The US Dollar (USD) continues to trade at stronger levels after regaining upward momentum at the end of last week. Economists at MUFG Bank analyze Greenback’s outlook.

A further escalation of concerns over the health of US regional banks is the main downside risk to the USD

The developments are supportive of our outlook for the US Dollar to strengthen further in Q1.

A further escalation of concerns over the health of US regional banks in relation to commercial real estate losses is the main downside risk to the USD in the near term. The latest Fed Senior Loan Officer Opinion Survey is scheduled to be released later today and will provide further insight into bank lending conditions.