The dollar has softened a little this week. US Dollar Index stays below 111 but economists at ING expect the DXY to hold above the 110 psychological level.

It is too early to declare the 'all-clear' for equity markets

“It does feel like it is too early to declare the 'all-clear' for equity markets – e.g. the Fed could well push US real rates deeper into restrictive territory – meaning that we are treating this dollar decline as corrective.”

“110 is a big psychological level for DXY and we would assume that it would hold ahead of another 75 bps hike from the Fed next week.”