USD Index may have put in some kind of low near 103.50 on Wednesday – ING

The Dollar mounted a modest fightback yesterday. Economists at ING expect the US Dollar Index (DXY) to have found support from this week’s events.

A poor environment for equities and commodities

“Slowdown fears will remain in the ascendancy and this looks like a poor environment for equities and commodities (though this latter asset class could find support from the supply side).” 

“We would like to think DXY has put in some kind of low near 103.50 on Wednesday and that this week's re-assessment of global growth can provide the defensive, high-yielding Dollar with some support.”

“Let's see whether 104.00/104.20 support can hold out short-term and indeed whether the Dollar can hold out at these levels until January when seasonal trends turn more supportive.”