Dollar Gains Strength as Fed Keeps Hawkish Stance

The US Dollar Index (DXY) is gaining ground for the third consecutive day, trading around 100.70 during Asian hours on Wednesday. The Greenback's rise can be attributed to a hawkish policy outlook from the Federal Reserve (Fed), which has signalled another rate hike before the end of the year.

Financial markets are pricing in this trajectory, with the CME FedWatch Tool showing nearly an 89.2% probability of a December rate increase. Traders will be keeping an eye on the preliminary US PMI data scheduled for release later on Wednesday.

TD Securities has offered its early take on September's US inflation path, anticipating a near 8% jump in gasoline prices and firmer food prices to lift headline CPI. However, core CPI is expected to slow, with services inflation mean-reverting and supercore easing after August's surge.