USD Index could reach 106.50, which may then prove the best level of the year – ING

The Dollar continues to quietly reclaim some of the heavy losses seen since last October. Economists at ING believe that the USD Index (DXY) can hold gains.

First quarter of 2023 is proving to be the push-back quarter

“We think the current Dollar rally is probably a correction to an underlying bear trend in 2023. This 1Q23 dollar correction may have a little further to run, however.”

“We see a scenario where DXY continues to edge up to 105.00, with outside risk this quarter to strong resistance at 106.50 (about 1.8% above current levels), which may then prove the best Dollar levels of the year.”