Dollar may stay broadly supported into the weekend – ING
|Economists at ING analyze USD outlook after US GDP figures beat estimates and confirmed the growth differential between the US and its key developed peers is significantly wide – and widening.
Stark growth gap makes the Dollar even harder to sell
With US GDP coming in strong, the growth divergence continues to widen, making the Dollar even harder to sell in the current environment.
When we strip out the immediate market impact of the data releases, the case for a stronger Dollar continues to consolidate.
If personal income and PCE figures for September fail to steer the FX market drastically today, we still feel that the USD may stay broadly supported into the weekend, and we would favour fading any (USD-negative) position-squaring upward correction in the crosses.
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