DXY Turns Positive Ahead of PPI Data Release
The US Dollar Index (DXY) has turned positive ahead of the release of the August Producer Price Index (PPI) data, which is expected to show a faster pace of growth at 5.3% Year-on-Year (YoY) compared to July's 4.7%. This could prompt fears of high inflation expectations and boost hawkish Federal Reserve prospects.
Financial markets will closely monitor the US PPI data to get fresh cues regarding the Fed's interest rate decision next week. In addition, investors will also focus on the US Consumer Price Index (CPI) data for August, scheduled for Friday.
The US Dollar Index Technical Analysis suggests that the Dollar Index Spot trades at 98.91, holding beneath the 20-day Exponential Moving Average (EMA) at 99.27 and the 61.8% Fibonacci retracement at 99.20. The Relative Strength Index (RSI) sits below the neutral 50 line, hinting that downside pressure remains in place.