Forex
DXY Slides to Three-Week Low Ahead of US Inflation Figures
The US Dollar Index (DXY) fell for the third consecutive day, reaching a nearly three-week low of 98.70-98.65 on Wednesday.
The index is now eyeing the August swing low at 98.50 as traders await the release of US inflation figures.
The data will be crucial in determining the next move for the DXY, with economists at DBS arguing that 'this week's CPI data will prove pivotal for the FOMC meeting next week.'
Rising Fed rate hike bets and geopolitical risks could support the safe-haven USD, but traders remain cautious amid the hawkish Bank of Japan-inspired rally in the Japanese Yen.