Dollar Extends Two-Day Decline as Oil Slides About 4% and Inflation Meets Forecasts
AI Market Summary
The dollar extended losses for a second session as U.S. inflation data aligned with expectations and a ~4% drop in oil prices reduced near-term pressure on Fed tightening. Market pricing now centers on a single 25bp hike this year, tempering the prior hawkish impulse after the Fed statement. Improved consumer sentiment reinforces a peak-inflation narrative, weakening short-term USD momentum despite a strong month overall.
Impact level
● Medium
Affected assets
NCSIDXY2USD/USDT+0.06%
AI Insight · NCSIDXY2USD/USDTAI Insight
● Neutral
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The dollar has slipped for a second straight session after U.S. inflation data came in line with expectations and oil prices fell about 4% on Friday, easing market conviction around further Federal Reserve rate hikes. Even so, the dollar had earlier touched a 13-month high this week and remains on course for its strongest monthly percentage rise since July. A pickup in consumer sentiment added to signs that inflation may be cresting.
