ING: Higher Energy Prices Support DXY Recovery

ING's Chris Turner highlights that the US Dollar Index (DXY) is finding support from rising energy prices and escalating tensions in the Gulf region. According to Turner, these factors are providing a cushion for the dollar, even as DXY trades roughly 1% below its June peak.

The analyst points out that the geopolitical backdrop remains a key driver, with deteriorating headlines from the Gulf adding to the bullish case for the greenback. Higher energy costs are also seen as a tailwind for the dollar, traditionally benefiting from such dynamics.

Despite the support, the dollar index has not yet reclaimed its June highs, suggesting some headwinds remain. The ongoing interplay between energy markets and geopolitical risk will likely continue to influence DXY direction.