USD squeeze may extend in the short run, economists at Scotiabank report.

The peak in the Fed cycle is close

There is some potential for the USD to firm up a little more in the short run, particularly. Beyond the issue of short-term interest rate differentials, the broader USD outlook is likely to be handicapped by a few other factors, however. The peak in the Fed cycle is close. Seasonal trends are USD negative through end Q3. Technical pointers are USD-bearish in broad terms. 

DXY gains could extend to test 102.50, potentially 104, in the next couple of weeks before renewed weakness develops.