The US Dollar Index, which snapped a six-day winning streak and lost 0.3% on Friday, is staying relatively quiet near 104.50 early Monday. Economists at ING expect DXY to push well above 105.00 on more risk-off waves.
All about risk sentiment
“We doubt we are going to see a rapid and material unwinding of defensive dollar positions in the week ahead.”
“We might see some tentative stabilisation in risk sentiment this week, which could favour a partial recovery in high-beta currencies and put a cap on the dollar upside for now. That is, however, far from assured given the volatility we have seen in recent weeks.”
“More risk-off waves would likely push DXY well above 105.00.”
