US Dollar Index to knock down the 100 barrier in the coming days – ING
The US dollar has continued to strengthen as global liquidity conditions deteriorate and energy prices have spiked again. Economists at ING expect the US Dollar Index (DXY) to hit the 100 level in the coming days.
Safe-haven inflows unlikely to stop soon
“A combination of elevated upside volatility in energy prices, equity underperformance and liquidity concerns continue to push investors seeking safety towards the greenback.”
“Along with the geographical vicinity and different correlation with risk sentiment, the disorderly rise in energy prices is what is generating a big divergence between the dollar (the US is largely energy-independent) and most European currencies (the region is largely dependent on Russian oil and gas). This looks unlikely to change soon.”
“A move to 100.00 in DXY seems plausible in the coming days.”
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FXStreet Insights Team
FXStreet
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