Report published June 10, 2026

FX Daily: Dollar Debasement Trade In Retreat (ING Research - 10 June 2026)

ING · June 10, 2026

The dollar is strengthening as US real interest rates rise and investors unwind previous debasement trades ahead of the May CPI release. Meanwhile, divergence in central bank policy continues with the BoC signaling dovishness and the CNB trending toward a rate hike cycle.

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Finvaulta summarizes ING's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.The 'dollar debasement trade' is unwinding as rising US real rates (up 60bp in six weeks) favor the USD over assets like gold and bitcoin.
2.Market focus is on the US May CPI report; higher inflation figures are expected to keep the dollar supported and reinforce Fed rate hike expectations.
3.The Bank of Canada is expected to remain dovish due to a technical recession and investment uncertainty, making the CAD a laggard in the G10 space.

FX Daily: Dollar debasement trade in retreat
USD: Core CPI will be key today
EUR: Consolidating into ECB
CAD: Bank of Canada to lean dovish today
CZK: Potential CNB hikes painting bullish picture for FX
Author

Report data

USD: Core CPI will be key today

Metric	Estimate	Context
US Real Interest Rates	60 bp	Increase in real rates relative to swap rates.
USD-denominated Money Market Fund Flows	99 bn	Highest inflows of the year.

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Authors / Editors

Chris Turner · Global Head of Markets and Regional Head of Research for UK & CEEFrantisek Taborsky · EMEA FX & FI StrategistFrancesco Pesole · FX Strategist