Last Friday's payroll report is continuing to lift the dollar—so much so that traders are starting to wonder how high it can really go.
Higher, said Callum Henderson, global head of FX research at Standard Chartered.
"It's an amazing market, which rejoices at just over 200,000 jobs created," he told CNBC. But even so, "the U.S. is a relatively strong story amidst anemic growth at best if not outright recession in Europe and elsewhere. So we still favor the U.S. dollar, particularly against G-10 currencies, for the first half" of the year.
Henderson is more sanguine on some currency pairs than others, though. Looking more closely at the G-10 currencies, he pointed out that "the dollar has outperformed particularly against those currencies where the central bank either has a weakening bias or is perceived to have a weakening bias."