The US Dollar Index trades on a softer note near 104.20 in Wednesday’s Asian session.
Rising bets on rate cuts and the Fed’s dovish stance might exert some selling on the DXY in the near term.
The safe-haven flows are likely to cap the DXY’s downside.
The US Dollar Index (DXY) remains on the defensive around 104.20 on Wednesday during the Asian trading hours. The prospect of Federal Reserve (Fed) rate cuts as early as September weighs on the DXY despite better-than-expected US Retail sales data. Investors will keep an eye on the US Building Permits, Housing Starts, Industrial Production, and the Fed Beige Book on Wednesday, along with the speeches from the Fed Barkin and Waller.
The US June Retail Sales released on Tuesday did not alter significantly from the Fed rate cut expectations. Retail Sales in the United States remained flat at $704.3 billion in June, after a 0.3% increase (revised from 0.1%) in May and in line with market forecasts. Retail Sales ex Autos rose 0.4% MoM in June, above the projected 0.1%, according to the US Census Bureau.
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