Bloomberg Surveillance · Wednesday, July 8, 2026
Mark McCormick, Chief FX Strategist at BMO Capital Markets, predicts continued strength for the US dollar, citing the Federal Reserve's hawkish policy shift and the robust performance of the US economy and equities. He suggests that this trend will tighten global financial conditions.
“I think I think what's interesting is right is we're finally kind of catching up to I think a storyline that reinforces the things that we've been pushing for months, which is the FED didn't need to cut. Now it's very arguable that the FED does need to hike at least once, or at least pull some of the cuts out from last year and move towards tighter financial conditions.”
“The second thing is US economy has been quite strong coming into twenty twenty six, and it's picking up further strength into twenty twenty into the second quarter of twenty twenty six. So our growth signals we track, which are very high frequency leading indicators, tell us the US economy is doing better than every other major economy which we attract.”
“So you add all these things together. The dollar wins on Carrie, it wins on economic performance, it wins on mostly on equities, and it's on the right side of the terms of trade shock. So you pull all these together and I feel like the market's finally catching up to this story.”