The US Dollar Index is showing resilience around the 99.10 level, supported by expectations of unchanged Federal Reserve policy despite easing core inflation. Market sentiment remains relatively stable, with investors closely watching upcoming US PPI and retail sales data for further economic insights. Concerns regarding the Fed’s independence appear to have subsided.
- The dollar index rose to around 99.2, approaching its highest level since early December.
- US CPI largely met expectations, reinforcing views that the Fed is likely to keep policy unchanged.
- Monthly core inflation showed signs of easing, coming in at 0.2%.
- Concerns over the Fed’s independence were calmed by support from other central bank heads and Wall Street bank CEOs.
- Investors are awaiting US PPI and retail sales reports.
- The US Dollar Index (DXY) hovers around 99.10 during the Asian hours.
This suggests the dollar is currently finding support from expectations that the Federal Reserve will maintain its current course. While inflation data is a factor, other economic indicators and assurances of stability within the Federal Reserve system are also playing a role in shaping the dollar’s value. Upcoming economic data releases will likely be crucial in determining whether the dollar can sustain its position.