Analysts at UBI Banca in Italy have indicated in a report that investors continue to favor the US dollar over other major currencies, as they believe that economic weakness outside the United States is more pronounced than domestically.
Yield differentials might further favor the US dollar.
Federal Reserve Chair Powell stated last Friday at the Jackson Hole symposium that interest rates could rise further, but the central bank will proceed cautiously, which is sufficient to keep the US dollar firmly supported.
