The dollar appears to be trading in a supported manner. Economists at ING analyze the outlook for the US dollar.
The dollar could remain supported
As for the dollar this week, our macro team expects Q4 GDP to be above consensus on Thursday. Good Q4 US GDP data could push US interest rates up a bit more, keeping the dollar supported.
We can say that it looks like a range-bound week for the dollar as the US Dollar Index (DXY) could trade in a range between 103.00 and 104.00. This will continue to see the market interested in carrying, and we note that the Turkish Lira and Indian Rupee are still able to deliver positive year-to-date total returns against the dollar – in a broad USD demand environment.