Given USD overnight rates now at 5%, shorting Dollars is an expensive proposition, economists at ING report.

5% USD deposit rates are hard to fight

“For today, we will see revisions to first quarter US GDP and the weekly initial claims data. With overnight USD deposit rates now a very dear 5.00%, the burden of proof for Dollar bears will have to be very high – and there is not just enough of it at present.”

“Above 104.00/104.20, there is an outside risk that DXY needs to trade all the way back to the 105.88 high seen in early March.”