DXY Stalls Ahead of US CPI Release

The US Dollar Index (DXY) remains relatively stable ahead of the July Consumer Price Index (CPI), which is expected to show a lower annual reading than June's, potentially reducing rate-hike bets from the Federal Reserve and weighing on the Greenback.

Wall Street traded in the red on Tuesday, contributing to the US Dollar's subdued performance. The dollar was the strongest against the Swiss Franc (CHF) among major currencies.

The Consumer Price Index is a key economic indicator that measures inflation, and its release could have significant implications for monetary policy and interest rates. A lower reading could reduce expectations of further rate hikes by the Federal Reserve, which would negatively impact the US Dollar.