Rabobank: The Dollar Could Rise if this Month’s Data Supports the FED’s Interest Rate Hike after July

Jane Foley, senior currency analyst at Rabobank, said in a note that if this week’s U.S. economic data is strong, the dollar could rise as markets begin to price in more rate hikes from the Federal Reserve beyond July.
The stronger-than-expected data could boost prospects for another Fed rate hike after July and support the dollar in the near term, she said.
For now, the market “remains reluctant to price in expectations of further rate hikes beyond July.”
However, any gains in the dollar are likely to be short-lived as “the U.S. economy is likely to slow towards the end of the year.”