US Dollar Index Holds Above 100 as Traders Await Inflation Data
The US Dollar Index (DXY) has retained its positive bias for the third consecutive day, despite lacking conviction. The index remains below the 100.00 psychological mark as traders await the release of US consumer inflation figures.
The data will provide cues about the US Federal Reserve's policy path and offer a fresh directional impetus to the DXY. Inflation risks stemming from volatile oil prices keep Fed rate hike bets on the table, supporting elevated US Treasury bond yields. This, combined with geopolitical uncertainties, continues to favor the safe-haven US Dollar.
From a technical perspective, the DXY holds below a dense Fibonacci retracement stack and the 200-period Exponential Moving Average (EMA) on the 4-hour chart. The Moving Average Convergence Divergence (MACD) stays marginally in positive territory, while the Relative Strength Index (RSI) hovers near 51.