Following comments from Atlanta Fed President Raphael Bostic, economists at ING analyze the outlook for the U.S. dollar (USD).

Fed hawks see 'pent-up prosperity'

The mood music at the Fed is still no rush to cut rates. On Monday, Atlanta Fed President Raphael Bostic talked about a "pentup boom" in the business sector that could pose a problem for inflation if the Fed cut rates too quickly.

Bostic's comments chimed with the widespread view that the Fed is in no hurry to cut rates, a view that Fed Chairman Jerome Powell is likely to echo when he testifies before the House Financial Services Committee on Wednesday.

We doubt that today's US ISM services data for February will be a major market driver, but a repeat of January's strong numbers would be positive for the dollar. We believe the dollar index will continue to seek support below 104.00.