Dollar losses have abated amid deteriorating risk sentiment. Economists at ING expect the US Dollar Index to hold above 102.00.
Taking a breather
“Markets may feel comfortable with the current Dollar levels ahead of next week’s fresh round of data releases in the US.”
“DXY could hold above 102.00 today, with some focus on housing data and two Federal Reserve speakers (Patrick Harker and Christopher Waller).”
“Discussions over the US debt ceiling are set to be an important driver for markets, but we currently see this having a material impact on the FX market only around the late summer.”