Three threads are influencing market sentiment at the start of this week. US Dollar may find support, in the view of economists at ING.
Upside risks this week
“Three key themes are highly influencing the market mood at the start of this week: 1) Friday’s very strong US jobs data; 2) US-China tensions over the Chinese air balloon; 3) reports about the next Bank of Japan (BoJ) governor. All in all, these three themes appear to be pointing primarily at upside risks for the Dollar this week.”
“We think DXY could consolidate around the 103.00 mark until new first-tier data in the US are released next week and could reignite the re-rating of US growth and Fed rate expectations.”
