Dollar’s short-term bias still appears neutral/modestly bullish – ING

The Dollar is restrengthening on Tuesday after a soft start to the week. Risk sentiment is too fragile for a big USD correction, in the opinion of economists at ING.

Further improvements in risk sentiment may become harder to sustain

“US data may not move the market dramatically today, so the Dollar may be primarily driven by global risk sentiment.”

“We struggle to see a material and sustained recovery in global equities in such a worsening valuation environment, and with data still supporting the Fed’s hawks for now, the Dollar’s short-term bias still appears neutral/modestly bullish.”

“A return above 105.00 in DXY seems possible in the ISM services release on Friday.”