The
US
Dollar
Index
(DXY)
remains
weak
on
Friday,
sitting
at
April
lows.
This
is
largely
a
response
to
the
soft
US
Consumer
Price
Index
(CPI)
figures
on
Thursday,
combined
with
softer
University
of
Michigan
(UoM)
sentiment
data,
both
supporting
the
prospect
of
a
Federal
Reserve
(Fed)
rate
cut
in
September.
Although
the
market’s
confidence
in
a
pending
rate
cut
is
growing,
Fed
officials
have
maintained
a
careful
approach,
emphasizing
their
dependence
on
rigorous
data
analysis
before
initiating
such
substantial
changes.
The
DXY
Index’s
breach
of
its
200-day
Simple
Moving
Average
(SMA)
has
intensified
the
negative
outlook
for
the
USD,
with
indicators
including
the
Relative
Strength
Index
(RSI)
and
the
Moving
Average
Convergence
Divergence
(MACD)
still
deep
in
a
negative
trajectory.
The
index
now
trades
at
its
lowest
level
since
April,
amplifying
the
bearish
sentiment.
But
after
losing
more
than
0.80%
in
just
two
sessions,
a
slight
upward
correction
may
be
possible.
However,
the
overall
technical
outlook
remains
bearish.
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