Outlook on the Strong Dollar

The outlook for a strong U.S. dollar remains positive as forecasts indicate that it could further strengthen through 2025. Key adjustments include expectations for the euro to drop below parity at 0.99 and for the renminbi to weaken, with dollar CNY projected to reach 7.4. This prediction stems from a current environment that is considered much more favorable for the dollar compared to previous years, primarily due to ongoing political and economic conditions that position the U.S. as relatively exceptional. Analysts note concerns, such as the potential risks associated with the political landscape, but they maintain confidence in the dollar's trajectory.