Dollar will hold gains in a sell-off in equity markets – ING

Equities are under pressure. Economists at ING analyze FX correlations with stock performance. 

Equity markets are looking increasingly vulnerable

Equity markets are looking increasingly vulnerable as the risk-free rate rises and as businesses are finding their margins under pressure.

A turn lower in core equity markets would like to keep the activity currencies under pressure and the Dollar bid.

A risk-off tone should keep the US Dollar Index (DXY) bid towards the top of its 106-107 range.

See: EUR/USD to pressure support at 1.0500 – ING