USD Index to consolidate between a 107.00-107.50 range – ING

The Dollar is continuing to crawl higher after its sharp sell-off earlier this month. Economists at ING expect USD Index (DXY) to trade a 107.00-107.50 range.

FOMC minutes in focus this week

“Wednesday will see the release of the minutes of the 2 November FOMC meeting. The minutes could pose a risk that the current Dollar correction extends. But assuming there are no big surprises – e.g. 'many participants wanting to take stock of the tightening undertaken so far', we would expect the Dollar to find support on dips.”

“Today's session should be reasonably quiet, too. DXY probably trades a 107.00-107.50 range.” 

“Upside risks could emerge from rising US Treasury yields were this week's $120bn of US Treasury issuance to demand concessionary pricing.”