Dollar Bullish Momentum Continues Despite Global Challenges

The global economy is facing a number of challenges, including rising inflation, slowing growth, and geopolitical tensions. These challenges have led some economists to warn of a potential stagflation environment, characterized by high inflation and low economic growth. Overall, the dollar had a few battles with other intermarket factors that tried to halt its bullish momentum, which has been ongoing for months.

The euro had many indications last week that it plans to strengthen its currency by increasing interest rates in the near future. Germany, which is the eurozone's largest economy, supported this with its ZEW economic sentiment, which came back better than expected, causing short-term weakness during the New York session. Fuel was then thrown on the fire, making the dollar aggressively bullish with the statements made during the ECB press conference. In addition, the unemployment claims and retail sales being better than expected fueled the dollar's ongoing bullish momentum.

With the upcoming Fed rate, where do you think is the next destination for the dollar?