Two Factors Contributing to a Stronger Dollar this Week

The US dollar has soared against major currencies. Strikes in the UK have exacerbated existing supply chain issues impacting GBP/USD, and fears about the European energy crisis has sent the Euro plummeting back below parity. Additionally, increased expectations for a more hawkish Fed have contributed to higher yields, also boosting the dollar strength. We have already hit our target of 108.50, but some red triangles on the KRI are starting to indicate resistance here. If we can break through this target, we have a high at 109.28 or so, then the next target is 109.86. If we retrace, then 107.20 should provide support.