The DXY Dollar Index rises to 104.00. ING economists analyze the outlook for the dollar.
A lower number of housing starts could be slightly negative for the Dollar
The US calendar is quiet ahead of Wednesday's FOMC meeting. With the market pricing in 68 basis points for Fed cuts this year, the FOMC could be slightly negative for the dollar. For now, however, the risk of the Fed's dot chart moving to just 50 basis points of cuts this year could continue to prompt modest hedging of bearish dollar positions.
Regarding today's data, it is worth highlighting the housing starts. Democrats are starting to pressure the Fed over blocking the housing market; Nobody wants to move house and lose a 3% mortgage rate. A lower number of housing starts could be slightly negative for the Dollar.
The DXY index could trade in a range of 103.50-104.00 today.
Source: Fx Street
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