Credit Agricole CIB Research discusses the USD outlook and maintains a bullish bias over the next 3 to 6 months.

"The USD has long been seen as the key beneficiary of the unfolding global economic slowdown: 1. The US economy is seen as more resilient than its European and Asian counterparts that are plagued by geopolitical or pandemic headwinds; 2. The Fed has emerged as one of the more hawkish G10 central banks in a boost to the USD’s rate appeal; while 3. The recent risk aversion spike has boosted demand for high-yielding USD cash and a look at previous risk aversion episodes would suggest that this could continue for the time being," CACIB notes. 

"We have subsequently adjusted our near-term FX forecasts to reflect this. In particular, we have boosted our USD near-term forecasts vs the GBP, AUD, NZD, NOK and SEK," CACIB adds.