The US Dollar Index (DXY) has surged above the 105.00 mark, reaching its highest level since November of the previous year. Economists at ING delve into the outlook for the USD amidst this strengthening trend.
As attention turns to key data releases, particularly the March Non-Farm Payrolls (NFP) job numbers scheduled for release this Friday, market focus is also directed towards today’s Job Openings and Labor Turnover Survey (JOLTS) data. Analysts anticipate a slight dip in JOLTS job opening figures, but a notable deceleration in the job vacancy rate could signal a more balanced job market and alleviate pressure for wage hikes. ING views this data as a potential catalyst capable of influencing market sentiment, with the potential to reverse some of the recent gains observed in the Dollar.
However, the broader context of US rate differentials suggests that barring a soft JOLTS data release, the USD can maintain its stronghold above the 105.00 threshold in the early stages of the week. This suggests that unless significant developments arise from today’s JOLTS data, the USD’s upward trajectory may persist in the near term.
