United States Dollar Index holds firm on hawkish Fed outlook

The US Dollar Index (DXY) has remained relatively stable following a series of rate hikes by the Federal Reserve (Fed). This stability comes amid expectations of further rate hikes in the future to combat high inflation. The Fed, led by Chairman Kevin Warsh, has emphasized that inflation remains "too high" and "has been for too long."

This hawkish stance has led to a 56.5% chance of another US rate hike at the upcoming October meeting, up from 42.5% the previous week. The DXY, which currently sits at 100.30, has held steady above both the nine- and 50-period Exponential Moving Averages (EMAs), indicating a bullish short-term trend. However, support is seen at the nine-day EMA near 99.85, with a deeper layer of demand at the 50-day EMA at 99.73.