Credit Suisse maintains a bullish bias on the USD through end of Q3.
"The broad USD rallied as might be expected after Powell’s hawkish speech at Jackson Hole last week, and core targets such as USDJPY 140.00, GBPUSD 1.1500 and USDCNH 6.95 are within reach," CS notes.
"But unusually, the EUR outperformed the greenback and most other major currencies. We put this down to a combination of market talk about a 75bp ECB rate hike at the 8 Sep ECB meeting as well as positive developments in European energy markets and gas storage levels. We also suspect the market is taking relatively hawkish comments by the ECB seriously and upgrading the EUR relative to currencies like GBP where central bank support has been absent," CS adds.