DXY stays depressed under 99 mark amid expectations of Federal rate cut

The dollar index continues to stay under 99 mark on Monday morning in Asia amid rising prospects of a Federal rate cut. Softer US inflation data released on Friday has reinforced the expectation of rate cuts from the US Federal Reserve (Fed). The US Consumer Price Index (CPI) rose 3.0% YoY in September, versus 2.9% prior, according to the US Bureau of Labor Statistics (BLS) on Friday. This figure came in below the market expectation of 3.1%. Meanwhile, the core CPI climbed 3.0% YoY in September, compared to 3.1% in August, softer than the 3.1% expected. On a monthly basis, the CPI increased 0.3% following the 0.4% rise seen in August, while the core CPI increased 0.2%, compared to the market consensus of 0.3%. The meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea on Thursday will also be closely watched. The dollar index that measures the greenback against a basket of currencies is quoting at 98.77.

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