US Dollar Index snaps two-week uptrend. Nevertheless, economists at ING expect DXY to move back higher to tackle the 114.70 September peak.

Fed determined to take real rates higher

“Our base case for this week is that the dollar will remain supported as the Fed’s determination to take real rates higher, paired with geopolitical and energy-related concerns, may keep risk sentiment on the back foot.”

“We suspect that a break above the 114.70 September highs in DXY is now only a matter of time, and surely possible by the end of the week.”