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The US Dollar Index has no dovish tail to price
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FXStreet Forex & Commodities News
Tuesday gives the Dollar Index a session with almost nothing in it.
A soft Consumer Price Index (CPI) print on Wednesday can postpone a hike, but it cannot buy the Dollar a cut, because there is no cut in the curve to buy.
Thursday's Producer Price Index (PPI) consensus tells a different story at the same hour: 4.9% YoY on the headline and 4.2% on core, running roughly a point and a half above the consumer measure for the same month.
Above it the declining 50-day EMA near 100.25 is the first real test, with the late-July peak just above 101.50 the level a hawkish week would aim at.
Support: The 200-day EMA near 99.50 has held four separate tests inside eight sessions, with the twin session lows sitting just beneath it in the 99.45 area.