Global investors still like dollar-denominated assets. The fundamentals still auger for dollar strength.
I think it's great news for the dollar and it will probably solidify the strong upward moves that we are seeing in today's session.
We still have widening interest rate spreads ... so the dollar looks good and today's data at the margin just keeps inflationary concerns bubbling.
We're still very optimistic with respect to the outlook for the U.S. economy in the coming quarters. Interest-rate spreads are probably going to start becoming more dollar positive.
It is too early to write the dollar off just yet. I'm not convinced that the best is over for the dollar. The market has moved to a stance that is too dovish on the Fed.
The backdrop is very favorable and I would expect dollar strength in the lead up to the next FOMC meeting.
New Zealand is one quarter away from recession. The New Zealand dollar is firmly embedded in a long-term decline.
All in all, developments on Rita and the G7 statement have not made me think the dollar rally will lose momentum anytime soon.