MUFG: Strong US Data Supports High-for-Longer Rates, Bolsters Dollar

Lloyd Chan of MUFG notes that strong United States macroeconomic data continues to justify a high-for-longer interest rate environment. This supports structural demand for the US dollar.

Key data points cited include the Personal Consumption Expenditures (PCE) Price Index and Gross Domestic Product (GDP), both of which signal persistent inflation and economic resilience. The firm expects the dollar to remain well-supported as long as the Fed maintains its current policy stance.