{
  "id": 841307,
  "title": "United States Dollar Index weakens as cooling US inflation eases Fed rate hike odds",
  "url": "https://urgent.news/2026/08/14/united-states-dollar-index-weakens-as-cooling-us-inflation-eases-fed",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-14T05:20:13.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/united-states-dollar-index-weakens-as-cooling-us-inflation-eases-fed-rate-hike-odds-202608140520"
  },
  "original_language": "en",
  "account": "The US Dollar Index is declining for a second day, trading near 99.90 in Asian trading hours on Friday. Investors' focus is now shifting to the upcoming July US Retail Sales data release. The Greenback has been experiencing downward pressure after a weaker-than-expected US inflation report dampened investor confidence. Additionally, US wholesale goods and services prices remained unchanged in July, below the expected 0.2% growth rate. The core Producer Price Index (PPI) increased by 0.2%, slightly below market expectations of 0.3%. Core PPI rose 4.2% year-over-year in July, compared to a 4.7% increase in the same period last year. These cooling inflation indicators have adjusted expectations for Federal Reserve monetary policy. According to the CME FedWatch Tool, the probability of a US rate hike at the upcoming September meeting has dropped to 34.8%, down from 40% immediately after the PPI data release. Analyst Jane Foley notes that \"Fed rate hike speculation has recently faced challenges due to recent US data releases,\" which could lead to further weakness for the US currency. However, she warns that this potential downside is not guaranteed, as \"the outlook could still be undermined by a surge in oil prices,\" which might restore support for the US dollar. In the daily chart, the Dollar Index is trading at 99.90, showing a bearish near-term outlook as it is below the 50-day Exponential Moving Average and just above the shorter nine-day EMA. The 14-day Relative Strength Index at 41.5 indicates weakening bullish momentum, while the FXS Fed Sentiment Index around 134.6 suggests that broader Fed-related expectations have yet to translate into sustained dollar strength. The immediate resistance lies at the 50-day EMA at 100.27, with a stronger barrier at 101.80, where sellers might regain control if tested. On the downside, the first support is at the nine-day EMA at 99.96, followed by a structural floor near 97.62, with additional support zones at 96.49 and 95.56, where deeper declines would likely pause if bearish pressure persists.",
  "summary": "The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is losing ground for the second successive day, trading around 99.90 during the Asian hours on Friday.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "UoM Consumer Sentiment Index set to ease as inflation, labour market worries loom",
        "url": "https://urgent.news/2026/08/14/uom-consumer-sentiment-index-set-to-ease-as-inflation-labour-market",
        "published": "2026-08-14T10:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}