A broader Dollar correction could have legs today – ING

FXStreet Insights Team FXStreet

The Dollar strengthened across the board on Tuesday with no clear catalyst. Economists at ING analyze the spurious USD rally.

Dollar rebound to rebound sustainably once short-term Treasury yields take another leap higher

We admit the Dollar jump was quite surprising, and without a clear catalyst, and therefore see room for the USD correction initiated overnight to extend today.

We suspect that in an environment that keeps pricing large Fed cuts, USD rallies aren’t very sustainable.

We’ll be awaiting the next leap higher in short-term USD rates to endorse a Dollar rebound.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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