ING expects USD support near 99.80 on DXY as traders await US CPI, PPI, and FOMC signals for policy clues.
The US Dollar Index remains steady as markets brace for key US inflation data and Federal Reserve meetings. ING anticipates support near 99.80 before potential upside retests, driven by labor market strength and price pressures.
Recent volatility in tech stocks has not overshadowed the broader focus on Fed policy tightening. Last week’s strong US jobs data and upcoming CPI and PPI reports will shape expectations for the FOMC’s stance. Asian currencies and risk assets have stabilized, but USD remains resilient.
Today’s NFIB small business optimism data, ADP jobs report, and April trade balance will provide additional signals. China’s robust trade data has also lent support to the renminbi and Asian currencies, while a $71bn decline in Fed custody holdings may influence US Treasury markets.