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Dollar index steadies below 100 as traders await US CPI cues
FXStreet said the DXY is holding a cautious bullish bias for a third straight day, with oil-driven inflation risks keeping Fed hike expectations and US Treasury yields supported ahead of CPI.
The US Dollar Index, which tracks the greenback against a basket of currencies, retained a positive bias for a third straight day on Wednesday, but remained below the 100.00 mark early in the European session.
Traders were waiting for fresh US consumer inflation data, which the market will look to for signals about the Federal Reserve’s policy path and the direction of the dollar.
FXStreet noted that volatile oil prices are keeping inflation risks in focus, which in turn supports elevated US Treasury yields and a safe-haven bid for the dollar amid ongoing geopolitical uncertainty.
On the technical side, the DXY was seen below a dense retracement area and the 200-period EMA on the 4-hour chart, while momentum indicators were only marginally positive; FXStreet said any break back below key support near 99.40 could reopen downside toward deeper weakness.
Latest closeDollar index 99.81 ▲0.0%