The greenback has risen today, and the Dollar Index (DXY) has made it’s new weekly high above 99.00.
The index reached its multi-day high above 99.00 as the EUR/USD fell against the dovish ECB stance. The ECB reduced the deposit rate to -0.50% and announced a new bond purchase program, as well as a staggering deposit system. At the same time, the central bank lowered its GDP and inflation forecasts for 2019/21.
The US consumer price index rose 0.1% YoY in August and 1.7% YoY (1.8% expected). Excluding the volatile food and energy components, consumer prices surprised with a rise of 0.3% (month) and 2.4% (year). The dollar index retreated from the 99.10 area, while the US 10-year bond yield fell from 1.78% to 1.66%.