Dollar Hesitates Amid Slowing Rate Hike Expectations

The US dollar's movement has been subdued following the release of tempered inflation data. This week, the dollar edged up by 0.4% against a basket of major currencies, aiming for its first weekly gain in three weeks.

This slight uptick comes as traders adjust their predictions on a potential September rate hike from the Federal Reserve. Initially, there was a 54% probability of a rate hike, but this has now decreased to 40%

The focus is now on upcoming wholesale inflation data and the core personal consumption expenditures index, which is a favored metric for inflation assessment by the Fed.