ING: Walsh’s upcoming speech could boost the US dollar

Odaily reports that Chris Turner of ING said in a research note that if Fed Chair Walsh focuses on price stability during his speech at the European Central Bank forum in Sintra, Portugal, the US dollar should remain firm. At his first meeting after taking office as Fed Chair in June, Walsh emphasized the need to bring inflation back down to the 2% target. Since then, data has shown the core Personal Consumption Expenditures (PCE) price index rising at 3.4%, along with a strong employment report.

Turner said that a reversal in market expectations for rate hikes "would be a big surprise," and instead, Walsh's speech presents "upside risks" for the US dollar. ING expects the US Dollar Index could rebound to the 101.700-101.800 range as a result of Walsh's comments. (Jinshi)