USD Index: Maybe 110 does prove support after all – ING

The dollar holds its ground against its rivals early Friday. For today, the highlight will probably be US price data, including the Q3 Employment Cost Index (ECI) release. Any upside surprise would lift the greenback, economists at ING report.

Dollar to remain bid on dips

“The hot story will be US price data. We get to see the Q322 ECI. Consensus expects the Q3 ECI to soften to the 1.2% QoQ area in today’s release. Any upside surprise could push the pricing of the Fed terminal rate (now 4.75% and off a recent high at 5.00%) higher. This would be dollar positive.” 

“Maybe 110 does prove support for DXY after all.”