Amid much intra-day volatility, the Dollar Index (DXY) is down around 0.5% on the week. That's not much, but DXY is now just a whisker away from the lowest levels in two years, ING’s FX strategist Chris Turner notes.

USD may be ready to break below its two-year range

“It seems obvious now that US labour market data will be the key macro driver of the USD story into year-end. That's why the USD saw a decent intra-day bounce yesterday on the lower-than-expected weekly initial jobless claims data. The USD is also moving in line with the US yield curve.”

“But the big question for the market right now is whether the USD is ready to break out of its two-year range.  We think it may well do because of some of the factors outlined above, but the timing remains uncertain.”

“There seems nothing on the agenda today to justify a breakout, but suffice to say we are in the camp looking for some strong follow-through selling should DXY support levels at 99.50/100 give way.”