The Dollar is struggling to find clear direction in the current market environment. Economists at ING think the greenback may lack clear direction until next week’s inflation data.

The waiting game is on

“We suspect key Dollar crosses will stay rangebound until the next key data releases. Next week’s CPI is the real risk event. And if the general risk environment proves resilient for another session today, the Dollar should still find a floor on the back of some defensive positioning ahead of next week’s inflation data, as happened in the run-up to the Fed meeting.”

“Fed communication remains important, but secondary to data. Additional policy remarks from the Fed’s Christopher Waller and Patrick Harker today are not likely to be a game changer for the Dollar.” 

“DXY may keep hovering around the 103 handle into next week’s CPI report.”