The Dow Jones Industrial Average spent most of Wednesday rewarding the disinflation trade and the final two hours dismantling it.

Brown Brothers Harriman’s Elias Haddad notes the Dollar has steadied after its post-CPI slide, with US economic outperformance, a higher-for-longer Federal Reserve stance and strong foreign demand for US securities limiting further downside.

Commerzbank’s Volkmar Baur notes that softer US inflation has reduced expectations for Federal Reserve rate hikes and pressured the US Dollar. June headline and core inflation fell more than consensus, leading markets to price out roughly half a hike by year-end.

MUFG’s Lloyd Chan notes that softer US inflation in June has reduced upside risks to US yields, leading markets to unwind much of the July Federal Reserve hike pricing and scale back tightening expectations for 2026.

Dow Jones futures inch lower by 0.04% to trade around 52,770 during European trading hours on Wednesday. Meanwhile, S&P 500 futures and Nasdaq 100 futures advance 0.19% and 0.79%, trading near 7,600 and 30,030, respectively.

MUFG’s Derek Halpenny notes that weaker US CPI has sharply reduced market expectations for a Federal Reserve rate hike, undermining a key source of recent US Dollar strength.

DBS Group Research economist Philip Wee warns that speculative long positions in the US Dollar (USD) look vulnerable after June US CPI surprised on the downside.

The US Dollar (USD) underperforms its major currency peers as traders have trimmed Federal Reserve (Fed) interest rate hike expectations for the current year, following the release of the softer-than-expected United States (US) Consumer Price Index (CPI) data for June.

The US Dollar Index (DXY) comes under selling pressure on Tuesday after softer-than-expected United States (US) inflation data prompted traders to scale back expectations of an imminent Federal Reserve (Fed) interest rate hike.

The June Consumer Price Index (CPI) fell 0.4% on the month against consensus for a 0.1% decline, following May's 0.5% increase, and the annual rate dropped to 3.5% from 4.2%, well under the 3.8% forecast. Core prices were flat MoM and eased to 2.6% YoY versus 2.8% expected.

Commerzbank’s Michael Pfister argues recent US Dollar strength rests on increasingly hawkish Federal Reserve expectations that may be overdone.

TD Securities strategists expect the US Dollar to retain some residual strength in Q3 as positioning normalizes and traditional safe-haven demand returns.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the rebound in Oil is lifting US inflation expectations and supporting the Dollar. Haddad highlights sticky US inflation, a resilient labor market and US economic outperformance as factors keeping Fed pricing hawkish.

Dow Jones futures lose 0.26% to trade around 52,620 during European trading hours on Tuesday. Meanwhile, S&P 500 futures and Nasdaq 100 futures fall 0.03% and 0.42%, trading near 7,560 and 29,600, respectively.

MUFG’s Michael Wan notes the Dollar strengthened as US Treasury yields rose and equities sold off, helped by renewed US–Iran tensions and higher Oil prices.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, sticks to modest intraday losses through the early European session on Tuesday as bulls seem hesitant ahead of the latest US consumer inflation figures.

BNY Markets’ John Velis and David Tam note that June Consumer Price Index (CPI) is expected to show softer headline inflation on lower energy, but recent events have lifted Oil prices again, complicating short-term forecasts.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is losing ground after two days of gains and is trading around 101.20 during the Asian session on Tuesday.

The US Dollar Index (DXY) surges toward 101.30, gaining around 0.3% as escalating tensions between the United States (US) and Iran boost safe-haven demand and drive energy prices sharply higher.

The US Dollar Index (DXY) regains momentum on Monday after hawkish remarks from Federal Reserve (Fed) Governor Christopher Waller boosted expectations of an interest rate hike as early as this month.

Risk aversion set Monday's tone, and the Dow Jones Industrial Average wore it better than most of its peers; the index trades near 52,525, down 117 points, or 0.2%, while the Nasdaq Composite sheds 1% and the S&P 500 gives back 0.4%.

MUFG’s Lee Hardman notes the US Dollar (USD) has gained modestly as renewed US–Iran tensions lift Brent Oil back to USD80, with markets rebuilding a geopolitical risk premium.

DBS Group Research economist Philip Wee notes that the US Dollar Index (DXY) Index has been confined between 100.5 and 102 for three weeks as traders await clarity on whether the Federal Reserve (Fed) will proceed with a potential rate hike later this year.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the US Dollar (USD) traded mixed, but expects USD to edge slightly higher over the next couple of months as US labor markets stabilize and inflation remains sticky.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts some sellers following an intraday uptick to the 101.22 area on Monday and fills a modest weekly bullish gap.

Dow Jones futures lose 0.12% to trade around 52,840 during European trading hours on Monday. Meanwhile, S&P 500 futures and Nasdaq 100 futures fall 0.45% and 1.30%, trading near 7,580 and 29,640, respectively.

OCBC strategists Sim Moh Siong and Christopher Wong expect the US Dollar (USD) to appreciate by around 2–3% by end-2026, supported versus low-yielding currencies such as the Euro (EUR) and Swiss Franc (CHF).

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining stronger for the second successive day, trading around 101.10 during the Asian session on Monday.

The upcoming week will bring a major test for the US Dollar (USD), with investors focusing on the United States Consumer Price Index (CPI), Federal Reserve (Fed) Chair Kevin Warsh’s congressional testimony and a broad set of activity indicators.

The US Dollar Index (DXY) trades within a volatile range on Friday as a sparse US economic calendar leaves traders watching developments in the Middle East after renewed hostilities between the United States (US) and Iran this week.