ING Research discusses the USD outlook in light of yesterday's FOMC policy meeting.
"Looking at the coming weeks, our view is that the post-FOMC dollar weakness may start to fade quite soon. The road to recovery for global risk assets is still long and quite bumpy, as the magnitude of a global slowdown remains high. Geopolitical risks also remain elevated, making the outlook for commodity prices uncertain. In addition, our suspicion is that markets should retain most dollar longs until the Fed is giving clearer signals that it is pivoting to a less hawkish stance," ING notes.
"Our baseline scenario is that the dollar will consolidate around these levels and may restrengthen from now until the September FOMC meeting. Expect a heightened sensitivity to data to keep volatility high," ING adds.