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USD Index to trade 101.00-102.00 near term – ING

The Dollar is proving quite resilient. Economists at ING analyze USD outlook.

Dollar can probably trade out ranges over coming weeks

Cross-market volatility remains low – perhaps as investors are now expecting prolonged pauses in core interest rate markets. This remains a negative for the Japanese Yen and a positive for the high yielders including the Mexican Peso and the Hungarian Forint. The dollar is probably trapped somewhere in the middle here and unless we see some sharp deterioration in US activity that would favour the Fed not just pausing, but easing – the Dollar can probably trade out ranges over coming weeks.

DXY to trade 101.00-102.00 near term.

 

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