Dollar Little Changed Ahead of the US August CPI Report

The dollar index (DXY00) on Wednesday rose by +0.03%.  The dollar found support on Wednesday on an increase in safe-haven demand from an escalation of geopolitical risks in Europe after Poland shot down Russian drones that had entered its airspace.  However, the dollar gave up most of its advance after bond yields declined on a weaker-than-expected US Aug PPI report, which cemented expectations for at least a 25 bp rate cut by the Fed at next week’s FOMC meeting.  The forex markets now await the key US CPI ...