The US Dollar Index (DXY) extended its slide on Friday, holding below 100.00 at fresh lows after a fourth straight soft US data print.

The Dollar Index took a payroll contraction on August 7, a cooler consumer price reading on August 12 and a flat producer price reading on August 13 without surrendering its range. Friday's data finally did it.

Two cooling inflation readings carried the broad market to a record on Thursday, taking the S&P 500 through 7,800 for the first time, and Friday morning supplied the explanation for where the cooling came from.

MUFG analysts Lin Li, Michael Wan, Lloyd Chan and Khang Sek Lee note that upcoming US economic data will be crucial for the US Dollar outlook.

Nordea strategists argue that while near-term risks for the Dollar are broadly balanced, the longer-term outlook remains negative.

MUFG’s Lee Hardman notes the US Dollar (USD) is trading on a softer footing as Fed rate hike expectations are scaled back following weaker labour data and a mixed United States (US) Producer Price Index (PPI) report.

Danske Bank’s Danske Research Team notes that US July PPI came in slightly below expectations, with volatile trade and transport services dragging the headline lower while broader services stayed firm.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the USD index (DXY) is trading near the lower end of its recent 99.50–100.00 range as cooling United States (US) Consumer Price Index (CPI) and Producer Price Index (PPI) have cut implied odds of a September Fed rate hike.

ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner note that post-CPI summer conditions are suppressing FX volatility and keeping the Dollar broadly stable. They still see scope for a weaker Dollar as market expectations for further Federal Reserve tightening look overstated.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, continues to lose ground through the first half of the European session on Friday and retreats further from a two-week high, touched the previous day.

OCBC’s Sim Moh Siong and Christopher Wong note that softer United States (US) Producer Price Index (PPI) and lower US Treasury yields have led markets to scale back expectations of a September Federal Reserve (Fed) hike, limiting US Dollar (USD) upside.

MUFG’s Lee Hardman notes the US Dollar (USD) is trading on a softer footing as Federal Reserve (Fed) rate hike expectations are scaled back following weaker labour data and a mixed United States (US) Producer Price Index (PPI) report.

Dow Jones futures remain subdued around 53,910 during European hours on Friday. Meanwhile, S&P 500 futures move little, hovering around 7,820, and Nasdaq 100 futures inch lower by 0.09%, trading near 30,160.

Commerzbank’s Volkmar Baur and Tatha Ghose highlight that despite a “low-hire, low-fire” US labor market, the Dollar remains supported. Initial jobless claims and unemployment stay very low, while wage growth shows only tentative signs of slowing.

The Dow Jones Industrial Average trades near 53,700 on Thursday, roughly 75 points and a tenth of a percent lower, on a morning when the S&P 500 prints a fresh record intraday high and the Nasdaq Composite runs close to a percent higher.

Rabobank's Senior FX Strategist Jane Foley analyzes the US Dollar’s (USD) evolving relationship with Oil and its safe haven role.

DBS Group Research economist Philip Wee notes that softer US CPI and labour data kept DXY locked in a 99.4–100.1 range after the USD/JPY sell-off linked to joint US-Japan interventions. Markets sharply reduced the implied probability of a September Federal Reserve hike.

Lee Hardman at MUFG reports that the US Dollar’s initial post-CPI weakness quickly reversed, with the dollar index returning to around 100.00 as markets trimmed but did not abandon expectations for a September Fed hike.

ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner note that the Dollar strengthened after an in-line US CPI, as markets had positioned for a hotter print.

Dow Jones futures gain 0.08% to trade around 53,910 during European hours on Thursday. Meanwhile, S&P 500 futures rise by 0.09% to trade around 7,780 and Nasdaq 100 futures advance 0.06%, trading near 29,870.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, is seen building on the previous day's sold bounce from the post-CPI swing low and prolonging its weekly uptrend for the fourth straight day.

BNY’s Geoff Yu argues that the July Fed meeting marked a peak in Dollar dehedging rather than an end to U.S. exceptionalism. Cross-border investors are rebuilding USD hedges, reducing effective unhedged U.S. exposure while maintaining broadly solid underlying demand for U.S. assets.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, continues its struggle to build on the momentum beyond the 100.00 psychological mark and edges lower during the Asian session on Thursday.

The July Consumer Price Index (CPI) landed at 12:30 GMT on every line the consensus had written for it, and the Dow Jones Industrial Average has spent the hours since handing back the few minutes of enthusiasm that followed.

TD Securities strategists note that July US inflation came in broadly in line with expectations, with headline CPI rising 0.1% m/m and core CPI increasing 0.2% m/m.

United States (US) President Donald Trump used a post on Truth Social to declare that the US has "total control" over the Strait of Hormuz on Wednesday., Trump boasted about the American naval presence near the Persian Gulf, which he described as "a wall of steel".

ING’s Chris Turner expects US July CPI to be the key driver for the Federal Reserve’s next move, with consensus looking for subdued headline and core readings that edge closer to the 2% target.

The US Dollar (USD) reflects a sideways performance against its peers ahead of the United States (US) Consumer Price Index (CPI) data is scheduled to be published at 12:30 GMT.

Commerzbank FX analyst Antje Praefcke notes that July US inflation is expected to rise only 0.1% month-on-month, with headline and core rates slipping to 3.4% and 2.5% year-on-year.

Brown Brothers Harriman’s (BBH) Elias Haddad notes markets are steady ahead of the United States (US) July Consumer Price Index (CPI) release, which is seen as pivotal for Fed funds expectations and the Dollar.