DXY can find some stabilisation around 104.00 into the weekend – ING

The Dollar rose for a second consecutive session on Wednesday. Economists at ING analyze USD outlook.

No turkey for Dollar bears

Today, FX flows will be subdued due to the Thanksgiving holiday. Equity and bond markets are closed, and there are no data releases in the US. 

Part of the rebound in the Dollar observed over the past two sessions (especially on Tuesday) may well be related to some profit-taking on risk-on trades and more defensive positioning ahead of Thanksgiving.

We think DXY can find some stabilisation around 104.00 into the weekend amid thinner trading volumes and a lack of market-moving data releases in the US.