US Dollar Index grinds higher past 102.00 as DXY bulls eye US Retail Sales, PPI

• US Dollar Index picks up bids after the previous day’s mixed performance, mildly bid on weekly basis.

• Yields, downbeat Euro put a floor under the DXY but softer US data, unimpressive Fed talks weigh on prices.

• Recently mixed US consumer-centric data highlights today’s US Retail Sales, PPI for December as low expectations can trigger upside surprise.

US Dollar Index (DXY) holds onto the week-start recovery moves with a slower pace on early Wednesday. That said, the US Dollar’s gauge versus the six major currencies picks up bids to 102.40 as it struggles to overcome the lowest levels since June 2022.

The DXY marked a dismal closing around 102.35 the previous day, after an initially positive performance. The reason could be linked to the downbeat prints of the New York manufacturing data, namely the Empire State Manufacturing Index for December. That said, the NY Fed’s business gauge dropped sharply in January to -32.9 versus -4.5 market forecasts and -11.2 prior readings. The data also pushed the Federal Reserve Bank of Richmond’s President and CEO Thomas Barkin to state, “My hope is that we have passed the peak of inflation.” As a result, the US Dollar bulls had a tough ride.