USD Strengthens Amid Inflation Concerns, ECB Rate Hike Looming

The US Dollar (USD) has maintained its strength near 99.00 as depicted by the US Dollar Index (DXY), despite a subdued forex market since the beginning of the week.

Investors are closely watching inflation data, particularly in the United States, with Thursday and Friday's PPI and CPI reports on their radar.

The DXY has formed a 'doji' candlestick pattern, indicating indecision among traders, while the EUR/USD pair has broken through 1.1600 due to overall US Dollar weakness.

Traders are awaiting the European Central Bank (ECB) monetary policy meeting on September 10, with money markets fully pricing in a quarter-point rate hike.

Bank of England officials have expressed concerns about energy prices and inflation, while Japanese authorities' suspected intervention has led to USD/JPY weakening below 153.00.