Amid an abundance of rather dismal PMIs in major Western economies, the dollar suffered a correction on Tuesday. Economists at ING think the post-PMI dollar correction may be fully reversed today.

Shrugging off the post-PMI correction

“We are not surprised to see the post-PMI FX moves being quite short-lived, as the macro picture and solidly hawkish expectations ahead of Jackson Hole should keep the dollar broadly in demand. 

“The quintessential lack of attractive alternatives – especially in Europe – means that DXY can still reach 110.00 by the end of the week if Fed Chair Jerome Powell sounds convincing enough in sticking to his hawkish message on Friday.”