US Dollar Index Price Forecast: Possibility of breakout above 101.80 hinges on US data
The US Dollar (USD) trades slightly lower against its key currency peers on Wednesday. At press time, the US Dollar Index (DXY), which gauges the Greenbacks value against six major currencies, is down 0.11% to near 101.28. Still, the asset is close to its two-month high of 101.64.
The US Dollar Index (DXY) is experiencing a slight decline against its key currency peers, currently trading near 101.28, slightly below its two-month high of 101.64. However, the asset is close to its two-month peak. The strength of the US Dollar varies against major currencies, with the British Pound being the weakest against it.
The next move in the US Dollar will depend on various US economic data slated for release this week, which could influence the Federal Reserve's (Fed) interest rate expectations. The US Dollar has been under pressure due to traders reducing hawkish Fed bets for the October policy meeting after comments from New York Fed Governor John Williams.
He stated that "there is no need for urgency after September rate hike," adding that "more data will help the Fed to decide what’s next for rate policy." Despite this, Williams did not rule out further policy tightening, suggesting that "one further hike likely this year" if inflation remains entrenched. Investors are also looking forward to US ADP Employment Change data for September and Personal Consumption Expenditure (PCE) Price Index data for August, which will be published in the North American session.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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