Ella 
The unexpected decline in CPI inflation in the United States in June caused the dollar to fall to a new low this year. ING economists analyze the outlook for the dollar.
This could be the beginning of a long-awaited cyclical decline for the dollar’s larger trend. There are similarities to the dollar sell-off in November and December (when the dollar fell 8% in two months), but the difference now is: i) positioning, speculators are no longer the same as they were in October Large long USD; ii) China and Europe growth stories don’t appear to require reassessment like they did in November.
That said, we are more bearish on the USD at the moment and the USD Index should find significant psychological support at 100.00. The next target after the breakout will be 99.00.
Today, focus on the US June PPI and weekly initial claims. If PPI falls further and initial claims rise, the dollar’s losses could extend.
