FXStreet reports that economists at ING Bank believe the current dollar rally is a bear market correction and that it does not need to push too much further ahead.

“The central tenant point from the Fed's minutes is no material change in tone – still dovish. At the same time the Fed has nodded approval for the December stimulus, and on the likely positives coming from vaccine effects on the economy in due course. “

“The Fed has shown no panic on inflation as of yet, acknowledging the likelihood for a ‘spring jump’, but also noting that the economy is far from where it needs to be. There is also no material evidence that the Fed is considering a near-term tapering, with conditions not likely to be met for some time, they suggest.”

“Dollar bulls will struggle to find much from the FOMC minutes to support their cause. Until there are much clearer signs that the Fed is prepared to take its foot off the accelerator, we believe the current dollar rally is a bear market correction and that it does not need to push too much further ahead.”