The Dollar opens Europe a little weaker. Economists at ING discuss the DXY outlook.

There is still a lot to like about the Mexican Peso

While the Dollar is slightly offered today, we think investors may be reluctant to rebuild Dollar shorts until next week's double event risk of CPI/FOMC has been overcome.

In the meantime, FX volatility levels continue to sink and the high yielders – especially the EM high yielders – are in demand. It is no doubt a crowded trade, but there is still a lot to like about the Mexican Peso which offers 12.5% implied yields through the three-month forwards.

DXY should trade well within a 103.50-104.50 range today