DXY: Range trading on data focus – ING
ING’s Chris Turner notes the Dollar has struggled, with FX options skew showing strong demand for Dollar puts across tenors. He highlights upcoming US data, including ADP jobs, NFIB sentiment and December retail sales, as key drivers.

ING’s Chris Turner notes the Dollar has struggled, with FX options skew showing strong demand for Dollar puts across tenors. He highlights upcoming US data, including ADP jobs, NFIB sentiment and December retail sales, as key drivers. Turner expects DXY to trade in a 96.50-97.50 range in coming days, guided by labour market releases and auction results.

DXY seen holding defined short range

"The dollar struggled yesterday and sentiment is poor. One can see that in the FX options markets, where the skew for dollar puts remains very much in demand over the short, medium and longer-term tenors."

"Looking ahead, today sees the release of the weekly ADP jobs data, the NFIB small business optimism index and then the December retail sales figure. The retail sales control group is expected to grow at a reasonably healthy 0.4% month-on-month and can maintain the view that the US consumer is alive and well."

"DXY could well be in the middle of a new 96.50-97.50 range for the next few days and will probably take its cue from labour market releases."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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