US Dollar Index: A drop below 101.00 and a test of 100.00 are tangible possibilities in the near term – ING

Economists at ING note that the US Dollar Index (DXY) could challenge the 100.00 level.

Downside risks are non-negligible

“While the short-term outlook for the Dollar remains neutral in our view, thanks to positioning skewed to the short-side (more in the Euro section) and unstable risk sentiment, markets remain ready to price in more Fed rate cuts, so downside risks are non-negligible.”

“We favour a stabilisation around 101.50, but a drop below 101.00 and a test of 100.00 in DXY are tangible possibilities in the near term.”

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