ING: USD Index Upside Risks Remain Supported After Soft Jobs Data

ING analyst Chris Turner points out that the US Dollar Index (DXY) has remained resilient following the release of softer-than-expected June jobs data. The currency has held its ground, with G7 foreign exchange volatility staying low and carry trades continuing to attract interest.

One-week dollar deposit rates are currently in the upper tier of the G10 currencies, further underpinning the dollar's appeal. Turner suggests that the fundamental backdrop still supports upside risks for the greenback, even as the labor market shows signs of cooling.