Investors should use Dollar strength this month to position for lower levels later in the year – ING
Source Fxstreet
In quiet markets, the US Dollar (USD) is coming slightly lower. Economists at ING analyze Greenback’s outlook.
DXY set to stay confined to something like a 103.80-104.40 range
Currently, the market prices around 90 bps of Fed easing this year. We suspect the Fed's own forecasts – 75 bps of 2024 easing – will be the minimum amount of easing the market will now price. And that is why, we think investors and corporates should use Dollar strength this month to position for lower levels later in the year.
We have been saying this week that a low volatility environment means that breakouts should not be chased. So let's see whether DXY stays confined to something like a 103.80-104.40 range.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The AUD/USD pair posts a fresh 10-month high near 0.6670 during the European trading session on Friday.
The Pound Sterling faces selling pressure against its major currency pairs on Friday after the release of the UK Gross Domestic Product and factory data for July.
Data shows the digital gold narrative may be in danger on the short term as Bitcoin has diverged from Gold in its 30-day Correlation.
The US Dollar stabilizes following Thursday's decline as market focus shifts to the University of Michigan's (UoM) preliminary Consumer Sentiment Index data for September.
Gold (XAU/USD) is seen building on the previous day's goodish rebound from the $3,613-3,612 area and gaining some follow-through positive traction during the Asian session on Friday.
Related Instrument
