DXY Recovers Near 99.00 Ahead of PCE Data

The US Dollar Index (DXY) has recovered some lost ground and is currently trading near 99.00 in early European trading hours on Wednesday.

This comes after a week of renewed efforts by the US to ease pressure on longer-dated Treasury yields, with US Treasury Secretary Scott Bessent announcing that the Department of the Treasury will double its bond buyback operations to at least $4 billion per operation.

Despite this move, traders are still concerned about the potential impact on national debt, which has surpassed $40 trillion. Furthermore, the Fed's reduced bets on an imminent interest rate hike have contributed to a decrease in the USD's value.

The release of the US July Personal Consumption Expenditures (PCE) Price Index data will be closely watched later on Wednesday, with any hawkish remarks from Fed policymakers potentially lifting the DXY in the near term.