You only need one hand to count the number of times that US Dollar Index (DXY) has fallen 4% in a single week. Economists at ING believe that the correction could run a little further.

DXY to go higher later this year

“This week is a quiet one for data and central bank policy action – meaning it is hard to rule out this correction running a little further. Could the DXY correction extend to 105 (from 106.90 currently)? Yes, but we would think 105 might be the extent of it.”

“We do have a preference for DXY going higher later this year, but we have to allow position adjustment to run its course. That could see DXY trade 106.50-107.50 today.”