ING: After a small rebound, the dollar enters a consolidation phase

March 30, ING said that the dollar recovered slightly on Wednesday, as the Federal Reserve’s repricing of interest rate expectations brought some delayed benefits.

ING analyst Francesco Pesole said in a note that the recent improvement in market sentiment coincided with a rise in Fed interest rate expectations, which had been cut earlier amid pressure on the U.S. banking sector.

However, the dollar’s gains may be limited this time around. The dollar’s modest rally yesterday may have been part of a series of rallies on a gradual decline, but it would favor some consolidation around current levels today.