MUFG Research the USD outlook and maintains a bullish bias over the coming weeks.
"The USD has corrected lower over the past week with weakness broadbased. It follows strong gains in recent months that have resulted in another period of exceptional USD strength. We are not convinced yet that there has been a significant shift in fundamentals to justify a sustained reversal lower for the USD," MUFG notes.
"Many of the drivers behind USD strength remain in place including a Fed that is still committed to faster policy tightening, and more acute downside risks to growth outside of the US. While we do expect both of these drivers to turn less supportive for the USD later this year, we believe it is premature for the USD to have already peaked out," MUFG adds.