Forex
Home›Forex›Major Pairs›US dollar volatility eases as markets brace for Septem…
US dollar volatility eases as markets brace for September Fed
ING says DXY is expected to stay between 99.50 and 100.00, while longer dated Treasury yields and tech debt issuance could change the outlook.
ING strategist Chris Turner says FX volatility is falling in mid August as investors appear comfortable with the Federal Reserve holding rates or potentially tightening in September.
Turner flags limited FX impact from upcoming US CPI on carry trades, but warns the bond market could disrupt conditions if longer dated US Treasury yields remain elevated and heavy tech sector issuance continues.
FXStreet notes Turner’s view that the US dollar index, DXY, is likely to remain in a tight 99.50 to 100.00 range, with the key risk centered on the Fed policy meeting on 16 September.
The strategist also points to potential pressure from longer dated yields and mentions Nvidia’s plan to partner with six investment houses to arrange $500 billion of debt financing for its customers, as broader issuance ramps up.
Latest closeDollar index 99.81 ▲0.2%