The dollar continues to retrace the mid-July to mid-August sell-off. But the US Dollar Index (DXY) is set to struggle to surpass the 108 barrier, economists at ING report.

USD to consolidate near the recent highs

“Barring some very poor pieces of US data (next week’s data calendar looks second-tier) or some surprising recovery stories overseas, we would expect the dollar to consolidate near the recent highs.”

“DXY broke the 107.50 level, however, getting to 108.00 should be significantly more difficult.”