It should be a good week for the Dollar – ING
|US data this week should offer nothing to Dollar bears, economists at ING report.
Positioning is probably the biggest headwind to the Dollar
US GDP should come in at over 4% and the Fed's preferred measure of inflation should still be running hot.
DXY should continue to consolidate in a narrow 106.00-106.50 range, but we can imagine that protective stops are building on long DXY positions in the 105.55/105.75 area.
Perhaps the most likely scenario for a lower Dollar is one where equities fall so hard that the short-end of the US curve is re-priced lower and crowded long Dollar positions get scaled back.
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