ING: Walsh's upcoming speech may boost the dollar

According to a report by ING's Chris Turner, if Fed Chairman Walsh focuses on price stability during his speech at the European Central Bank forum in Sintra, Portugal, the dollar should remain firm. At his first meeting as Fed Chairman in June, Walsh emphasized the need to bring inflation back to the 2% target. Since then, data has shown that the core Personal Consumption Expenditures (PCE) price index rose by 3.4%, and the employment report was strong.

Turner stated that if market expectations for a rate hike reverse, "it would be a big surprise." Conversely, Walsh's speech could pose "upside risks" for the dollar. ING expects that, influenced by Walsh's remarks, the dollar index could rebound to the 101.700-101.800 range. (Jinshi)