MARKET OUTLOOK - A Correction Possible Considering the Tension in Long Dollar Positions

Forex - ING stated that the dollar is facing a downward correction but argued that any pullback would be modest and short-lived. ING analyst Francesco Pesole mentioned that a correction is possible given the tense long dollar positions betting on the currency's rise. Pesole noted that the US producer price data to be announced at 16:30 GMT could act as a catalyst for a correction if it comes in lower than expected. He expressed that if Fed Chairman Jerome Powell avoids linking Donald Trump's potential inflationary policies with Fed decisions in his speech at 23:00 GMT, it could weaken the dollar. However, he emphasized that the likelihood of the DXY dollar index falling below 106.000 is low, and any decline could attract buyers. The DXY has risen to 107.064, its highest level in the past year.