US Dollar Index could rise above 106.50 as US Inflation-related jitters emerge
The DXY bulls are supported by concerns over Wednesday's US CPI report. Inflation forecasts for the United States have been lowered as a result of a decline in oil prices. The Fed is pleased with the rise in U.S. nonfarm payrolls as it relates to the inflation rate.

The US dollar index (DXY) is anticipated to end its retreat move sooner and may resume its ascent if it comfortably clears the crucial barrier of 106.50. After reaching a high of 106.45 on Monday, the asset was corrected. The DXY defended the important support of 106,000 and greatly increased bids.
According to the preliminary predictions for US inflation, the price increase index will decrease to 8.7 percent from 9.1 percent. Inflation consensus has decreased as a result of the decline in oil prices in July. The investing community is cognizant of the unpredictable oil prices' effect on the price increase index. Now, declining oil prices are demonstrably dampening inflation estimates. In contrast, the core CPI, which excludes volatile oil and food prices, is anticipated to increase from 5.9 percent to 6.1 percent.
Remain optimistic last week despite decreased investment by US business players as a result of rising borrowing rates and a halt in their recruitment efforts. Federal Reserve (Fed) policymakers were concerned that the lack of support from US labor data would exacerbate an already difficult job. Now, the optimistic labor market data and signs of inflationary weariness may alleviate concerns about managing a higher inflation rate.
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