US Dollar Index (DXY) alternates gains with losses near the 113.00 zone. In the view of Kit Juckes, Chief Global FX Strategist at Société Générale, DXY is more likely to plunge towards 100 than climb to 125.

Short-term dollar bullish bias still makes sense

“In the US, data remains mostly robust, and the Beige Book gave bond bulls no encouragement; concerns about slower potential growth don’t help limit the need for Fed tightening. Surely, we have all the information we need ahead of the November 2 FOMC, with a 75 bps hike ‘in the bag’ and warnings of more to come, more than likely.”

“There’s enough juice left to get USD/JPY ‘properly’ through 150 but while a short-term dollar bullish bias still makes sense, DXY is much more likely to fall to 100 before we ever see 125. Mind you, I very much doubt we see either of those levels any time soon!”