The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a positive note near 98.55 during the early European trading hours on Friday. The DXY recovers some lost ground amid the cautious mood in the market. The University of Michigan Consumer Sentiment Index and UoM Consumer Inflation Expectations data will be the highlights later on Friday.
The US Dollar rebounds from the 11-week lows as traders turn cautious. However, the potential upside for the DXY might be limited due to prospects for more Federal Reserve (Fed) rate cuts in 2026 amid signs of a weakening US labour market and soft inflation.
US inflation, as measured by the Consumer Price Index (CPI), eased to 2.7% in November, according to the US Bureau of Labor Statistics (BLS) on Thursday. This reading came in below the market consensus of 3.1%….
