Usd To Remain Range Bound Ing

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Usd To Remain Range Bound Ing

Us Dollar To Remain Range Bound In Near Term - Ing

According to a senior analyst from ING, the US Dollar is expected to remain range-bound in the short term. They also cited how the recent stimulus package from China lacks key details while the US Bank earnings have supported the US equity market.

Given the current fundamental situation, the Dollar Index (DXY) will likely trade in the 102.70 - 103.20 range. For now, the US Dollar is holding its own against other currencies as the chances of a 50 bps rate cut have gone down significantly.

Two More Rate Cuts This Year

ING analysts believe that prospects of a smaller rate cut have allowed the US Dollar some breathing space. Up ahead, the US Retail Sales for September are due on Thursday.

The forecast shows that the Retail Sales reading for September will be 0.4% m/m. If this happens, it will support the rhetoric that the US economy continues to grow.

ING believes that the US growth during Q3 will be around 3.2% q/q. They also added that more Fed speakers will now support the idea of two 25 bps rate cuts this year. That would be negative for the US Dollar as the market is only pricing one more rate cut by the end of 2024.

Recently, Scott Bessent gave a media interview where he talked about how Trump will weaken the US Dollar in order to achieve trade gains. Now, it could become a possibility if Trump wins the upcoming elections in the USA.

In simple words, Trump will try to weaken the US dollar against other currencies if he is elected. On the other hand, the current status quo will likely continue if Kamala Harris wins the upcoming elections.

Whoever wins, one thing is certain: the upcoming elections will bring a lot of uncertainty and volatility into the equation.

Amidst all of this, it remains to be seen whether the US Dollar will remain in the range mentioned by ING.

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