FX.co ★ Dollar Steady Ahead of Key Inflation Data

The US dollar index remained stable at around 99 on Wednesday, navigating within a narrow range this week as investors adopted a cautious stance ahead of the upcoming Consumer Price Index report. This report is anticipated to shed light on the economic repercussions of recent tariffs. Additionally, market participants are vigilantly observing developments in the US–China trade negotiations. US Commerce Secretary Howard Lutnick announced that both nations have reached a framework to implement the Geneva consensus, adhering to commitments from a recent presidential discussion. He also remains optimistic about China potentially lifting its restrictions on rare earth exports, whereas the US is contemplating easing its limitations on advanced technology sales to China. Despite this trade optimism, the dollar is hovering near its lowest points since early 2022. This decline is fueled by increasing investor concerns regarding the broader economic impact of President Trump’s trade and fiscal strategies, which have led to a pivot away from US assets.