Economists at ING discuss USD outlook.

Fed Chair Powell to keep the market biased towards a 25 bps hike on 26 July

While much of the focus will be on overseas rate meetings this week, the US calendar still sees important congressional testimony from Fed Chair Jerome Powell on Wednesday and Thursday. It looks too early for him to divert from the Fed's hawkish narrative and will keep the market biased (71% probability now priced) towards a 25 bps Fed hike on 26 July.

DXY will probably continue to trade near 102.00 with a downside bias.