Svmuu News: Chris Turner of ING Group stated in a report that if Federal Reserve Chairman Warsh focuses on price stability during his speech at the European Central Bank (ECB) forum in Sintra, Portugal, the U.S. dollar should remain strong.In his first meeting since taking office as chairman of Federal Reserve in June, Warsh 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 jobs report has been strong.
Turner noted that a reversal in market expectations for rate hikes “would be a major surprise”; conversely, Warsh’s remarks would present “upside risks” for the dollar.ING Group expects that, influenced by Warsh’s remarks, the U.S. Dollar Index may rebound to the 101.700–101.800 range. (Jin Shi)