• The US Dollar popped higher on Wednesday after a surprise uptick in Core CPI data.  
• Markets gear up for another batch of data, with weekly Jobless Claims and PPI. 
• The US Dollar Index is on the brink of popping above 102.00, which would break out of its bandwidth from recent weeks.

The US Dollar (USD) trades broadly flat on Thursday, clinging to gains posted on Wednesday after US core inflation surprised to the upside. After the US inflation data,, markets have now nearly fully priced in a 25 basis point (bp) rate cut by the Federal Reserve meeting on September 18, largely ruling out the possibility of a larger cut. Meanwhile, markets will shift focus to the other side of the Atlantic Ocean, where the European Central Bank (ECB) is set to announce a 25-basis-point rate cut. 

Amidst the ECB rate decision, a rather full data set out of the US will be released. Besides the weekly Jobless Claims, the Producer Price Index (PPI) will shed more light on the inflation front. Expect thus some volatility across the board for both the Euro and the US Dollar, with the DXY US Dollar Index bound to move substantially.