ING: Dollar May Decline After PCE Data, But Losses Will Be Limited

Forex - ING analyst Chris Turner stated that if the Fed's preferred inflation gauge remains high in October, the Euro could weaken against the dollar, though the depreciation would be limited. Turner emphasized that the Euro "still looks quite oversold" and that month-end portfolio flows are likely to support dollar sales. He noted that any deviation in the core personal consumption expenditures price index data, set to be released at 16:30 Turkish time, could heighten doubts about the Fed further lowering interest rates in December. "Nevertheless, a drop of the Euro to the 1.0400-1.0425$ level would be sufficient before any potential rebalancing dollar sales emerge at month-end," he added. The Euro last rose by 0.3% to 1.05113 dollars.