Analysts: The dollar is expected to soar on hopes that the economy will "not land".

Some analysts said that with the latest signs of the U.S. economic recovery suggesting that the Federal Reserve may delay (and/or less) rate cuts this year, coupled with the European Central Bank's confirmation this week, June may be the start of its easing cycle, and the dollar may have more momentum reserves. Last week, a number of Fed officials said they were in no hurry to cut interest rates, and Friday's strong jobs data supported the prospect that the economy would not land. Markets are currently pricing in only a 25 basis point across-the-board rate cut in September. Against the backdrop of sticky inflation, the increased likelihood of higher interest rates for longer should keep US Treasury yields elevated, helping to support the dollar's premium over major currencies. The next potential trigger for a higher dollar is a surprise upside in the US inflation report later this week and whether ECB President Christine Lagarde hinted at a rate cut in June on Thursday. There is a growing belief that a wider yield spread will revive the dollar's rally in 2024.