ING
June 1, 2026
Dollar to Build a Stronger Footing
FX StrategyFXMacro Economic IndicatorsRates Govt BondsInformation TechnologyEnergy
ING expects the US dollar to strengthen this week as macro data points to re-accelerating US growth and a hawkish Fed, while geopolitical concerns from the Middle East fade.
Key Takeaways
- 1.The US dollar is expected to remain supported by re-accelerating economic growth driven by AI investment and healthy labor market data.
- 2.Geopolitical risk in the Middle East is fading in its market impact, with low FX volatility encouraging interest in carry trades.
- 3.European inflation expectations remain elevated, potentially forcing the ECB to hike rates twice this year in June and September.
Table of Contents
- USD: A switch back to US macro this week
- EUR: CPI expectations survey can firm up two ECB hikes
- GBP: Bailey subdues tightening expectations
- CEE: Beginning the month with caution
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Authors
Chris TurnerFrantisek TaborskyFrancesco Pesole
Securities
DXYUSDJPYEUR/USDGBPUSDEURHUF
Themes
AI-Driven Macro AccelerationCarry Trade Interest in Low Volatility EnvironmentCentral Bank Policy Repricing
Regions
North AmericaEuropeMiddle EastUnited StatesIranJapan