The Dollar has fallen nearly 2% since last Tuesday’s US CPI release. Economists at ING analyze USD outlook.
Bearish unwind into Thanksgiving
Given the major US Thanksgiving public holiday on Thursday, we suspect this period of position-unwind can continue a little further.
Inputs into FX markets this week will include second-tier US data and the release of minutes to the 1 November FOMC meeting. The market seems in the mood to look out for some dovish headlines here, and this can prove a negative dollar event risk tomorrow evening.
DXY has decent support at 103.50, marking the 50% retracement of its rally from July. This could mark the lower boundary of this week’s trading range, while the top could be the 104.40/104.50 area.
Source: https://www.fxstreet.com/news/the-dollar-can-edge-a-little-lower-near-term-ing-202311200928