USD Index: A recovery to the 107.00 highs looks more likely than another material correction – ING

The US Dollar struggles to build on Tuesday's impressive gains. Economists at ING analyze Greenback’s outlook.

High US yields make the Dollar an expensive sell

The US data calendar is quiet today, with new home sales the only highlight. There will be some focus on a speech by Federal Reserve Chair Jerome Powell, although he may not discuss monetary policy.

With markets having seen a modest reaction to geopolitical risk and high US yields making the Dollar an expensive sell, a recovery in DXY to the 107.00 highs looks more likely than another material correction for now.