Dollar set to hold gains through February – ING

The US Dollar (USD) is the strongest performer in the G10 space this year. It looks like the Dollar will be able to hold recent gains for another couple of weeks, economists at ING say.

Setting up another good month for the Dollar

Tuesday's strong US January CPI release clearly does not provide the Fed with the confidence it needs to start cutting rates. Instead of powering the next leg of the risk rally, the CPI data has applied the brakes and suggests the Dollar largely holds onto its gains into the next big US price release – the January PCE data on 29 February.

The US Dollar Index (DXY) can trade on the firm side of a 104.60-105.00 range today.