DXY: Watching the CPI – OCBC

US Dollar (USD) traded a touch softer this morning. DXY was last at 98.29 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Bullish momentum shows signs of fading

"Trump’s nomination of Stephen Miran was the latest factor that weighed on USD though there were chatters that Miran may not be confirmed before Sep FOMC. While his tenure is temporary, his dovish presence may still influence the votes at upcoming FOMCs. There are 3 more FOMC meetings in September, October and December this year."

"Understandably, several officials, including the 2 dissenters Bowman, Waller as well as possibly Lisa Cook, Goolsbee (judging from their recent Fedspeaks) may already have tilted dovish. US CPI report will be closely scrutinised this week. Softer than expected print may weigh on USD."

"Bullish momentum on daily chart shows signs of fading while RSI fell. Support here at 98 levels, 97.20. Resistance at 99.50 (100 DMA), 100.50 levels."