The US Dollar is still battling December seasonality, which is leading it to weaker levels. However, the market will mainly focus on next week rather than going in one direction, economists at ING report.
The Dollar’s fighting season
“The Dollar tends to be seasonally weak in December, so this is a month of damage limitation for Dollar bulls like ourselves.”
“The US calendar includes PPI and University of Michigan survey numbers today. With markets being focused on various gauges of inflation, expect Dollar sensitivity to these data releases.”
“The Dollar could stabilise around current levels as markets gear up for the last week of action (Fed, ECB and BoE meetings) of 2022.”
“DXY may stay around 104.50/105.00 today.”