Dollar Weakness Narrow Path, No Fed Hikes Expected

ING Think notes that the path to a weaker US dollar is narrow. They do not see any Federal Reserve hikes contributing to dollar weakness.

The EUR/USD is at 1.154, with a mildly bullish one-month bias and targets of 1.16, 1.17, 1.18, and 1.20 for the next three months and a year respectively.

The USD/JPY has been impacted by joint interventions since 1998, currently at 157.84 with a bullish one-month bias and targets of 160.00, 158.00, 158.00, and 154.00 for the next three months and a year respectively.

The Bank of England's doves are becoming more dovish, with the GBP/USD at 1.3463 and a neutral one-month bias and targets of 1.35, 1.34, 1.34, and 1.33 for the next three months and a year respectively.