The US Dollar Index rises for a fourth day as traders await the US PCE inflation report, a key Fed policy input.
The US Dollar Index (DXY) holds above 101.50, trading near 101.60 in European trading, marking its fourth consecutive day of gains. The index tracks the USD against six major currencies and remains supported ahead of the US Personal Consumption Expenditures (PCE) inflation data, a critical measure for Federal Reserve policy decisions.
Prior to this streak, the DXY had fluctuated between 100.50 and 102.00 over the past month, reflecting market uncertainty over inflation trends and Fed rate cut timing. The upcoming PCE report is expected to show a slight easing in price pressures, aligning with recent Consumer Price Index (CPI) data.
Market reaction has been muted in early trading, with traders adopting a wait-and-see approach before the data release. The USD remains near session highs against most major peers.