DXY may well trade a 103.50-104.00 range today – ING

The US Dollar Index (DXY) rises to 104.00. Economists at ING analyze Greenback’s outlook.

A lower housing starts figure could prove a mild Dollar negative

The US calendar is quiet ahead of Wednesday's FOMC meeting. With the market now just pricing 68 bps of Fed cuts this year, the FOMC could prove a mild Dollar negative. For the time being, however, the risk of the Fed Dots shifting to just 50 bps of cuts this year could continue to prompt some modest Dollar short covering. 

One thing to mention regarding today's data is the housing starts. Democrats are starting to put pressure on the Fed over the locked-up housing market; no one wants to move home and lose a 3% mortgage rate. A lower housing starts figure could prove a mild Dollar negative.

DXY may well trade a 103.50-104.00 range today.