The post Current Dollar strength may only last another month or two – ING appeared on BitcoinEthereumNews.com.

Strong US jobs data and a higher-than-expected January CPI number have unnerved the disinflation trade in FX markets – namely, that of a benign decline in the Dollar. Economists at ING analyze Greenback’s outlook. Benign Dollar decline to start next quarter Federal Reserve officials accept that the disinflationary path will be a ‘bumpy’ one. However, we retain a view that inflation will remain on track towards policy targets. If that is the case, current Dollar strength may only last another month or two. For the FX benchmark EUR/USD, that probably means that the downside is limited to the 1.0500/1.0700 area this month; recall that January and February are typically strong months for the Dollar. We continue to expect a modest rally this summer and EUR/USD to end the year somewhere near 1.1500.   Source: https://www.fxstreet.com/news/current-dollar-strength-may-only-last-another-month-or-two-ing-202402191514

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Filed under: News - @ February 19, 2024 10:24 pm