Home USD: (1.1): Tentative Signs USD Rally Might Have Peaked N-Term – ING
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USD: (1.1): Tentative Signs USD Rally Might Have Peaked N-Term – ING

The Dollar reached new highs but has it gone too far? The team at ING sees the peak behind us.

Here is their view, courtesy of eFXdata:

ING Research discusses the USD outlook and adopts a tactical bearish bias going the coming week,  flagging some signs suggesting that the USD rally might have peaked in the near-term.

There are some tentative signs that the storm of dollar buying might have blown itself out.

Some of the high yield EM currencies most under pressure recorded sizable gains on Thursday after the core US CPI figure rose a benign 0.1% MoM in April. The biggest potential dollar positive risk of the week has therefore been negotiated.

The US data calendar does not look especially threatening to dollar bears next week,” ING argues.

“Being dollar bears, we think there is a chance that  DXY  put in an important high at 93.42 on Wednesday and  we would now favour a tentative decline to 92.0,” ING projects.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.