Room for some marginal Dollar recovery – ING

US Dollar Index edges higher above 100.00. Economists at ING analyze Greenback’s outlook. 

Next week’s FOMC meeting could be the opportunity to recover some lost ground

Next week’s FOMC meeting could be the opportunity to recover some lost ground. We cannot exclude the possibility that markets will position ahead of the meeting by closing some freshly-built speculative Dollar shorts, which could help close the short-term USD undervaluation gap against the Euro. 

Today, some housing data and MBA mortgage applications will be in focus and we still see room for some marginal Dollar recovery.