US Dollar Index to stay soft – ING

The US Dollar Index (DXY) has seen some modest weakness – now down around 0.5% on the week. Economists at ING expect the greenback to stay on the back foot.

DXY year low is around 100.75/80

“In the US, there will again be focus on the initial jobless claims numbers and whether any substantial rise (Dollar bearish) signals some easing in US labour supply.”

“Overall expect DXY to stay soft – unless we start to see any dislocation in US money markets again such as a sharp widening in the Euro cross-currency basis swap or a much higher FRA-OIS money market spread.”

“The DXY year low is around 100.75/80, below which 100 beckons.”