USD Index set to trade well within a 102.00-103.00 range – ING

FX markets are relatively quiet following yesterday's public holiday in the US. Economists at ING analyze USD outlook.

USD/JPY to continue nudging higher

There is only second-tier US data today in the form of housing starts and we have the Fed's James Bullard speaking. He is one of the most hawkish Fed governors, but not an FOMC voter this year. Presumably, he may shed some light on why the Fed could hike by another 50bp this year (consistent with the latest Dot Plots), but that may not move the dollar needle much.

DXY is to trade well within a 102.00-103.00 range and expect USD/JPY to continue nudging higher. It increasingly looks as though Japanese authorities will be called into FX intervention again near the 145 level.