US Dollar Index to enjoy a near-term recovery to the 103.30 area – ING

The US Dollar Index (DXY) fluctuates in a relatively tight range above 102.00. Economists at ING expect the dollar to stay bid and see the DXY returning to the 103 area.

Hawkish set of FOMC minutes should keep the dollar supported

“A hawkish set of FOMC minutes and ongoing concerns about Chinese growth prospects continue to provide the dollar with support and make for an uneasy environment for risk assets.”

“We prefer to see the recent DXY 3% dip as a bull market correction and favour a near-term recovery to the 103.30 area as the Fed cycle is re-priced higher again.”

“We doubt today's US data of the revised 1Q GDP number, initial jobless claims or pending home sales will have much say in dollar pricing.”