The recent price action denotes a reluctance to rotate away from the USD, in the view of economists at ING.
Disinflation not enough for the bears
DXY may consolidate above 102.00 over the next few days.
Evidence of a US economic slowdown is needed to bring USD substantially lower.
The US remains on an encouraging disinflation track, but the Dollar is not turning lower. This is, in our view, due to a lack of attractive alternatives given warning growth signals in other parts of the world (such as the Eurozone and China).