DXY Holds Steady Amid FOMC Hike Expectations

The US Dollar Index (DXY) has defied expectations by remaining relatively stable despite joint foreign exchange intervention from the US and Japanese authorities. According to ING's Chris Turner, this is because markets are still pricing in a Federal Reserve hike in September.

Turner highlights the upcoming release of key economic data, including July ISM manufacturing and US jobs numbers, as crucial inputs for the Fed's decision. He notes that a strong showing from these releases could make it even more likely for the Fed to raise interest rates in September.

The DXY has been trading near the 99.35/40 support level, but Turner sees potential for a break above 100 this week. He attributes the dollar's resilience to the uncertainty surrounding the Fed's decision and suggests that only poor economic data would be enough to deter a hike.