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Dollar stays supported as markets reprice Fed versus ECB tightening

ING’s Chris Turner said the US Dollar Index reached fresh yearly highs, with 102.85 flagged as the next upside level, after softer September jobs data failed to dent dollar expectations.

Reported · Written up by our desk · Major Pairs

ING’s Chris Turner said the US dollar remains supported as investors weigh French fiscal risks and a shift in expectations for European Central Bank tightening against a more resilient US Federal Reserve path, according to FXStreet.

Turner highlighted the US Dollar Index (DXY) pushing to fresh yearly highs and pointed to 102.85 as the next upside target, noting that the euro, which makes up 58% of the DXY basket, has been pressured.

He added that a softer September jobs report did not materially weaken prospects for the dollar, with markets appearing comfortable pricing unchanged Fed policy for the late October meeting followed by a December hike.

For near-term catalysts, Turner said attention would likely turn to ISM services data and the FOMC minutes, scheduled for Wednesday evening, as the market watches short-dated US rates.

Latest closeDollar index 101.92 ▼0.2%

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