US Dollar Index to trade well within the confines of last week’s 103.40-105.80 wild range – ING

The US Dollar Index (DXY) remains near the year’s highs. Economists at ING expect DXY to move within last week’s 103.40-105.80 range.

Any dollar downside today is likely to be limited

“US may look at a temporary tax holiday on gasoline. Let’s see how this gasoline tax holiday story develops and what size of fiscal stimulus it represents. This should be another factor keeping the dollar strong this summer.”

“Expect DXY to trade well within the confines of last week’s 103.40 to 105.80 wild range.”

“The next big dollar input will be when Fed Chair Jerome Powell delivers his semi-annual monetary policy testimony to the Senate – which judging from the latest FOMC meeting should be pretty hawkish and means that any dollar downside today is likely to be limited.”