ING analyst Francesco Pesole says the dollar's recent strength is unlikely to
persist unless Friday's US nonfarm payrolls far outpace forecasts. News of a
US-Iran agreement over the Strait of Hormuz could cap further dollar gains and
help stabilize government bond markets and risk sentiment, he adds. ING's
short-term valuation model shows the dollar is overvalued; the DXY was up 0.1%
at 101.101, but a level near 100.50 would better reflect fundamentals. ING
expects this week's employment data to keep markets guessing about the Fed's
odds of another rate hike in October.
