ING: Wash's upcoming speech may boost the US dollar

Odaily Planet Daily News Chris Turner of ING said in a report that if Federal Reserve Chairman Wash focuses on price stability in his speech at the European Central Bank forum in Sintra, Portugal, the US dollar should remain firm. In his first meeting after taking office as Fed Chairman in June, Wash emphasized the need to bring the inflation rate back to the 2% target. Since then, data has shown that the core Personal Consumption Expenditures (PCE) price index rose 3.4%, and the employment report has been strong.

Turner said that if market expectations for interest rate hikes reverse, it would be "a big surprise," and conversely, Wash's speech would create "upside risks" for the US dollar. ING predicts that the US dollar index could rebound to the 101.700-101.800 range under the influence of Wash's speech. (Jin Shi)