Post #15982

DXY Rebounds Toward 100 as Hot PPI and Oil Risk Put the Fed Dot Plot in Focus DXY is back near 99.9 after dipping toward 99.5 earlier, showing buyers stepping in on the pullback. The next key test remains whether USD can build acceptance back near the 100 handle. The dollar is firming as inflation pressure re-enters the driver’s seat. Oil is climbing again on headlines that Iranian energy facilities have come under attack, keeping the energy-to-inflation pipeline hot. At the same time, U.S. PPI surprised higher—headline +0.7% MoM and core +0.5% MoM—reinforcing that inflation is still sticky even beyond energy. Now it’s about the Fed. Rates are expected to stay unchanged, but the market will focus on the dot plot and Powell’s tone. If the Fed revises 2026 expectations toward fewer or no cuts because of higher energy prices, that’s USD-positive and can fuel a quick pop. - Alan