DXY: A return to the 106.50/107.00 area in the near term seems plausible – ING
|Once the quarter-end adjustments are past us, the overall environment should favour another leg higher in the Dollar, economists at ING report.
Room for a rebound
Despite the treasury sell-off and strong US data, the Dollar has entered a correction, probably due to quarter-end flows. With personal spending and PCE figures potentially topping expectations today, we look for a USD restrengthening.
We could see a hawkish repricing in rate expectations coming to the Dollar’s help today, and we are bullish on the Greenback today.
A return to the 106.50/107.00 area in DXY in the near term seems plausible in the current market conditions.
See – US Core PCE Preview: Forecasts from seven major banks, losing speed
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