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 The US Dollar remains an attractive place to park money until some clearer trends develop – ING
February 7, 2024

The US Dollar remains an attractive place to park money until some clearer trends develop – ING

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It has been a relatively quiet week in the foreign exchange (FX) markets, with the US Dollar largely maintaining its gains following Friday’s robust jobs report. Analysts at ING offer insights into the outlook for the Greenback.

In the near term, the DXY (US Dollar Index) appears to be trading within the range of 104.00 to 104.75. One of the few scenarios that could slightly dampen the Dollar’s strength this week is a potential risk-on environment, especially if progress is made in a Qatari-brokered Israeli-Hamas ceasefire.

Given that the Dollar offers a 5.3% return on overnight deposits, it remains an attractive option for investors seeking a safe haven until clearer market trends emerge.

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