The USD struggles to extend gains past its 200-day moving average as investors await key inflation data and Fed signals.
The US Dollar Index remains capped below its 200-day simple moving average at 99.15, limiting recovery attempts from three-month lows. Despite marginal gains on Wednesday, the broader bearish trend persists as momentum indicators stay in negative territory.
Investors are holding back ahead of the US Personal Consumption Expenditures Price Index release and the Jackson Hole symposium later this week. Strategists note stabilization in US asset exposures, though non-US investors are not actively reducing dollar holdings further.
Technical resistance at the 200-day SMA reinforces the bearish outlook, with analysts warning that sustained weakness in dollar flows or inflation expectations could signal deeper structural shifts.