ING expects the US Dollar to stay supported into early 2027 by strong growth and a hawkish Fed, with a potential shift in the second quarter as inflation returns to the 2% target.
ING strategist Chris Turner sees the Dollar underpinned into early 2027 by strong US growth, inflation above 3% and a hawkish Federal Reserve keeping money markets priced for an extended tightening cycle in Q1. That supports the currency near term. The same view flags a turn in Q2 2027, when energy-driven base effects drop out and inflation returns to the Fed's 2% target, pulling short-dated US rates lower.
ING strategist Chris Turner forecasts the US Dollar will remain supported into early 2027, driven by robust economic growth and inflation exceeding 3%. The currency is expected to maintain strength through the first quarter as the Federal Reserve sustains a hawkish stance, before facing downward pressure in the second quarter as inflation targets align with the Fed's 2% goal.
ING expects the Dollar to stay supported into early 2027 by strong US growth, inflation above 3% and a hawkish Federal Reserve, before weakening next spring as inflation falls back to the Fed's 2% target.
In the second quarter, when energy-driven base effects drop out of headline inflation and short-dated US rates move meaningfully lower as inflation returns to the Fed's 2% target.