DXY Stalls Below 100.00 as Fed Hike Bets Fade

The US Dollar Index (DXY) has stalled below the 100.00 psychological mark, struggling to build momentum beyond this key level.

Despite the recent decline in interest rate hike bets, the DXY remains confined within a nearly two-week-old range, waiting for a fresh catalyst to drive its next move.

The US Consumer Price Index (CPI) report released on Wednesday showed that inflation continued to moderate in July, forcing traders to reduce their expectations of an immediate Federal Reserve interest rate hike.

However, the ongoing US-Iran standoff and volatile oil prices have kept geopolitical risks in play, acting as a tailwind for the DXY. The focus now shifts to the release of the US Producer Price Index (PPI), due later during the North American session.