Dollar to hold onto its strength through the week – ING
Dollar looks likely to hold gains, in the view of economists at ING.
DXY should continue to find decent demand below 105.00
Despite unchanged rates the Fed, through its statement and dot plots, will hold out the possibility of one further hike to the 5.50-5.75% range later this year.
Even though we should see 25 bps rate hikes across four European central banks through the week we doubt the Dollar has to lose much ground – if any.
DXY remains relatively strong and there does not seem a case for a decisive turn lower this week – unless we are all surprised by the Fed.
There is a strong band of resistance in the 105.40/105.80 area, which may well cap this week. But equally, DXY should continue to find decent demand below 105.00.
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FXStreet Insights Team
FXStreet
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