ING strategists highlight that cyclical drivers have reasserted themselves in FX, underpinning a stronger Dollar over the coming months. They argue that these cyclical factors will keep the Dollar bid, delaying any meaningful downturn. The note frames current Dollar strength as part of a broader cyclical upswing rather than a temporary spike.

Cyclical forces support dollar strength

"Cyclical factors return to the FX market and look set to keep the dollar bid over coming months."

"The credible threat of some Fed tightening later this year prompted a bullish re-assessment of the dollar."

"FX: Cyclical dollar bullishness takes over."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)