The US Dollar has declined following the release of softer-than-expected US inflation data. While the core CPI reading was in line with expectations, the overall downward trend in inflation has raised questions about the need for aggressive interest rate cuts by the Federal Reserve.
Market Focus
The market’s focus now shifts to other economic indicators to gauge the overall health of the US economy. While the possibility of a September rate cut remains high, the pace of future easing is becoming less certain.
Technical Outlook
The US Dollar Index (DXY) exhibits a clear bearish bias, with technical indicators pointing to continued downward pressure. The index remains below key moving averages, and the RSI suggests ongoing selling momentum. Support levels are at 102.40, 102.20, and 102.00, while resistance is located at 103.00, 103.50, and 104.00.
