ING Forecasts US Dollar Index to Break Above 106.00 Before Friday, Correction Expected with NFP Release

The US Dollar Index (USDX) is set to break above 106.00 before Friday, according to ING’s latest forecast. The USDX is a measure of the value of the US dollar relative to a basket of foreign currencies. It has been trading in a range between 105.00 and 106.00 since the beginning of the month, and ING believes that this range will be broken before the end of the week.

The main driver behind the expected break is the upcoming release of the US Non-Farm Payrolls (NFP) report on Friday. This report provides an indication of the strength of the US labor market and is closely watched by investors. ING believes that a strong NFP report will lead to an increase in demand for the US dollar, pushing the USDX above 106.00.

However, ING also expects that the USDX will experience a correction after the NFP report is released. This is because investors will be expecting a strong report, so any disappointment could lead to a sell-off in the US dollar. ING believes that the correction could take the USDX back down to 105.00 or lower.

Overall, ING’s forecast suggests that the USDX is likely to break above 106.00 before Friday, but could experience a correction after the NFP report is released. Investors should be aware of this possibility and be prepared for a potential correction in the US dollar after the NFP report is released.

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• Source: Plato Data Intelligence: PlatoAiStream