Dollar Expected to Strengthen into Year-End Despite Short-Term Flatness

The US dollar may experience a period of stability this summer before strengthening into year-end, according to Société Générale's chief foreign exchange strategist Kit Juckes. The Société Générale forecast expects the DXY to remain flat during the summer months but then increase by 4% by year-end.

Juckes warned that crowded positioning could make the path to dollar strength 'anything but smooth.' This cautionary note suggests that investors should be prepared for potential market volatility as the dollar seeks to recover.