DOLLAR INDEX EYES BREACH BELOW 101 MARK; US CPI IN FOCUS

Published on Jul 12, 2023 11:05

The dollar index has been on a freefall this week, lingering around two month lows giving up crucial levels and currently eyeing to breach yet another 101 mark ahead of crucial data. The greenback is pulling back on concerns that Fed will mellow down its hawkish mode as labor market showed slower pace of growth and on anticipation of softer US inflation that is expected to be revealed later today. Meanwhile, the dollar index that measures the greenback against a basket of currencies is being pressured at 101.06 by gains in euro, yen and pound that carry heavy weight in the index. The Japanese yen surged 0.6% to a near one-month high against the dollar, whereas euro and pound are also up 0.2% on the day. US benchmark treasury yields coming off recent highs are also indicating a sooner peak to Federal rate hikes that does not bode well for the greenback.