USD Index could find some support after climbing back above 100.00 – ING

Last week’s US disinflation shock altered the FX landscape, but a few days without key data releases will tell us whether that impulse can keep the Dollar on the back foot as the FOMC risk event draws nearer, economists at ING report.

How FX markets will trade from now on?

This week will be interesting to watch since the lack of tier-one data in the US will offer a clue on how FX markets will trade from now on; the question is whether investors now see enough reasons to add short positions on the Dollar ahead of the FOMC or take a more cautious approach. The latter – which appears marginally more likely in our eyes – may see the Dollar reclaim some portions of recent losses. 

DXY could find some support after climbing back above 100.00.