DXY Drops Below 98 Ahead of Trump–Putin Summit
The US Dollar Index (DXY) weakened again below 98.00 on Friday. The sharp rise following Thursday's stronger-than-expected PPI data only lasted around 98.35—the top of the current downtrend channel—before fading and returning to the 97 area.
Market risk appetite improved moderately on hopes that today's Trump–Putin summit in Alaska could bring progress toward ending the Ukraine war. This supported the euro and pressured the dollar. Earlier, the US PPI posted its largest increase in three years—signaling that tariffs were starting to trickle down to inflation—briefly boosting the dollar and cooling the euphoria surrounding a quick interest rate cut.
As the PPI dust settled, investors saw that futures markets were still pricing in a >90% chance of a 25 bps cut in September, prompting renewed selling pressure on the dollar. Today's agenda: US Retail Sales and U.S. Michigan consumer inflation expectations will provide the next direction for the dollar—strong data has the potential to lift the DXY, while weak data could depress it further. (ayu)
Source: Newsmaker.id
