US Dollar Index: The late-September highs are well within reach – ING

Economists at ING continue to favour a stronger dollar this week. In their view, the US Dollar Index (DXY) could retest the 114.76 September high.

Main narratives point at stronger dollar

“US markets are closed for a national holiday today, so we could see a quieter than usual start of the week in markets. Moving on, we remain bullish on the dollar, as the underlying narrative of a hawkish Fed – paired with lingering geopolitical and energy prices concerns – should keep risk sentiment weak and safe-haven flows into the greenback strong.”

“A re-test of the 114.76 September high in DXY is our base case over the next few days.”