US Dollar to recover some ground before a clearer downtrend emerges – ING
It has been a quiet start to the week in FX. Today, economists at ING will keep an eye on a speech by Fed member John Williams ahead of Thursday’s US Consumer Price Index (CPI)
DXY should keep hovering around the 102.50 level today
Markets are in wait-and-see mode ahead of Thursday’s US CPI data and currently lacking a clear sense of direction.
Our view remains that a gradual repricing of Federal Reserve rate expectations to a later start of the easing cycle will keep risk assets on unstable ground in the near term, helping the Dollar recover some ground before a clearer downtrend emerges.
Today, the US calendar is quiet, with only MBA application numbers in focus. It will be more interesting to hear from New York Fed President John Williams in his speech about the 2024 economic outlook.
DXY should keep hovering around the 102.50 level until Thursday’s inflation data unless Williams moves the market.