Dollar Index Struggles Amid Geopolitical Uncertainty and Soft Data

The US dollar index remains stuck in a tight range near 99.50 due to geopolitical tensions and soft economic data.

Canada's July CPI beat expectations, with headline inflation rising 3.0% y/y, while the USD/CAD has stayed below 1.39 amid strong Canadian data and looming US tariff threats.

The euro reached a nine-week high against the dollar but faces upward constraints due to vulnerabilities in Europe and fluctuating energy prices.

Markets are increasingly turning back to economic data to guide near-term FX moves, with industrial production and housing starts data being released today.