The Dot Plot surprise should prevent a major Dollar rebound – ING

The Dollar is recovering some ground. Economists at ING analyze Greenback’s outlook.

Softer into year-end?

The US Dollar is recovering some ground after the pushback from Fed officials against rate cut bets. However, the dovish Dot Plot may work as an anchor for rates and keep the USD soft into the end of December.

We expect the US Dollar Index (DXY) to stabilise around 102/103 into year-end, but risks are skewed to the downside.

See: US Dollar Index to fall by just under 5% to 97 in 2024 – SocGen