US Dollar: Hawkish skew supports upside risks – ING

ING strategists led by Francesco Pesole note the Dollar’s rally is driven by hawkish Federal Reserve rhetoric and stronger US inflation, pushing DXY back to April 2025 levels. They stress this is a rates-driven move, with real front-end differentials supporting Dollar momentum. The team continues to see upside risks in coming days, with PPI flagged as a potential catalyst for another USD leg higher.