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.

OCBC’s Sim Moh Siong and Christopher Wong highlight that the US Dollar (USD) stayed mixed as markets waited for the key United States (US) Consumer Price Index (CPI) release, with Middle East tensions and hawkish Federal Reserve (Fed) rhetoric offsetting each other.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, retains a positive bias for the third straight day on Wednesday, though it lacks bullish conviction.

Dow Jones futures are steady around 53,890 during European hours on Wednesday. Meanwhile, S&P 500 futures gain by 0.18% to trade around 7,760 and Nasdaq 100 futures rise 0.48%, trading near 29,770.

Commerzbank analysts highlight cautious positioning in the Dollar ahead of July US CPI, with the Dollar Index steady near 99.83 and EUR/USD around 1.1540.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending gains for the third successive day and trading around 99.90 during the Asian hours on Wednesday.

Tuesday gives the Dollar Index a session with almost nothing in it.

The Dow Jones Industrial Average broke the three-session coil that had pinned it beneath its record, traded up through 54,200, and has since surrendered the entire move.

OCBC’s Sim Moh Siong and Christopher Wong note the US Dollar (USD) softened as Fed hike expectations moderated and the US yield curve steepened.

The US Dollar Index (DXY) appreciates for the second consecutive day on Tuesday, favoured by a mix of concerns about the stalled US-Iran negotiations and hawkish Fed speak, which keeps hopes of a September rate hike alive.

ING’s Chris Turner notes that FX volatility is falling as investors appear comfortable with the Federal Reserve holding or potentially tightening rates in September.

Dow Jones futures decline by 0.11% to trade around 54,000 during European hours on Tuesday. Meanwhile, S&P 500 futures are steady around 7,770 and Nasdaq 100 futures gain 0.12%, trading near 29,770.

The US Dollar (USD) extends its Monday recovery move on Tuesday, as rising Oil prices due to prolonged fears of energy supply disruption keep global inflation expectations de-anchored.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, struggles to capitalize on the previous day's positive move and oscillates in a range during the Asian session on Tuesday.

The US Dollar (USD) traded broadly firmer on Monday, with the US Dollar Index (DXY) up around 0.2% and holding just above 99.80 as Oil surged more than 6% on the ongoing Strait of Hormuz standoff.

The Dow Jones Industrial Average trades near 54,000 on Monday, lower by a tenth of a percent inside a range of barely 200 points, the narrowest daily bar in weeks. Every price of the session sits inside Friday's range, and Friday's sat inside Thursday's.

BNY’s Wee Khoon Chong notes that the US Dollar (USD) has been the weakest G10 currency on iFlow metrics as markets scale back expectations for a September Fed hike.

MUFG’s Derek Halpenny notes that weaker US jobs data have not triggered a strong reaction in Dollar or rates, as markets await key Consumer Price Index (CPI) releases and another Nonfarm Payrolls (NFP) before the September Federal Open Market Committee (FOMC).

Deutsche Bank strategists note that Friday’s mixed United States (US) Nonfarm Payrolls (NFP) report led to a notable repricing of September Federal Open Market Committee (FOMC) odds, with futures-implied probability of a hike falling to 44%.

BNY’s Geoff Yu and David Tam note that weaker United States (US) labor data have lowered real-rate expectations and extended the Dollar decline, creating a more supportive environment for risk assets and duration.

The US Dollar Index (DXY) consolidates losses, trading below 100.00 at the time of writing on Monday, holding near its lowest levels since mid-June.

Societe Generale’s Kenneth Broux reports that weaker US employment data and downward revisions have sharply reduced expectations for a September Fed hike, though one move remains priced for December.

Dow Jones futures are steady around 54,150 during European hours on Monday. Meanwhile, S&P 500 futures gain 0.16% to trade near 7,790 and Nasdaq 100 futures gain 0.39%, trading near 29,950.

The US Dollar (USD) edges up against its peers on Monday after a vertical decline on Friday. At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally higher to near 99.70.

The US Dollar Index (DXY) fell below the 100.00 region after sinking through Friday's session. July Nonfarm Payrolls (NFP) showed the US economy shedding 23K jobs against forecasts of an 80K gain, with June revised down to 20K, and Average Hourly Earnings slowing to 3.2% on the year.

The American labour market contracted in July and the Dow Jones Industrial Average answered with a gain of roughly 65 points, a tenth of a percent, trading near 54,000 into the afternoon.

TD Securities strategists note that the US Dollar (USD) weakened after the disappointing July Payrolls report, but see limited downside against G10 currencies unless softer US inflation further reduces Fed hike expectations.