By eFXdata — Mar 01 - 03:00 PM
Barclays Research sees a scope for further USD strength in the near-term before drifting lower into year-end.
"The disinflation narrative is under question and the market has increased the probability of a 50bp hike in March. The market (and the Fed) remains data dependent, and will focus on the key employment report next week," Barclays notes.
"Although our views are for the dollar to normalize to fair value by end 2023 (e.g. towards 1.12 vs EUR); in the near term, the risks are for further dollar strength," Barclays adds.
Barclays Research/Market Commentary