FX markets have opened the week on a steady footing, buoyed by a strong end to last week from equities and appearing to shake off a slightly lower-than-expected growth target from China. Economists at ING expect the Dollar to remain range-bound.
DXY set to trade within a 104.00-105.50 range
“In today's session, the Dollar has not found too much support from a slightly lower-than-expected Chinese growth target for 2023 at 5.0% (5.5-6.0% had been expected). Equally, equities continue to hold up quite well despite last week's big rise in bond yields and are providing a little support to pro-cyclical currencies.”
“We suspect it is another range-bound week for the Dollar, where DXY continues to trade in a 104.00-105.50 range and local stories can win out.”
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