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 stabilise 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

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 stabilise 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.