Dollar’s drop might have come far enough for the time being – ING
|The Dollar is hovering near recent lows. Economists at ING analyze USD outlook.
Don’t chase the Dollar bear trend
While acknowledging that November and December are seasonally soft months for the dollar, our view is that this Dollar sell-off has come a little early.
We are bearish on the Dollar through 2024 but expect the core driver to be a bullish steepening of the US Treasury curve – which has not happened yet. Indeed, US two-year Treasury yields remain firm near 5%. We thus urge caution in chasing this Dollar decline much further.
Until we get some clear dovish communication from the Fed or US data is materially weak enough, we think this Dollar drop might have come far enough for the time being and suspect that the 103.00/103.50 support area could well hold the DXY this week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.