ING: Walsh'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 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 Federal Reserve Chairman in June, Walsh 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 by 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." On the contrary, Walsh's speech would bring "upside risks" to the US dollar. ING expects that due to Walsh's speech, the US dollar index may rebound to the range of 101.700-101.800. (Jin Shi)