The US Dollar Index is capped in the mid/upper 102s, economists at Scotiabank report.
Peak Fed policy will make it harder for the USD to advance
The July rebound in the USD appears to have stalled; the Fed is slipping into neutral now and peak Fed policy will make it harder for the USD to advance.
US CPI data on Thursday may still carry some ‘sticker shock’ for markets in the form of a nudge higher in price growth but the USD may not be able to advance too far on that alone.
DXY gains are liable to be capped in the mid/upper 102 region.
Source: https://www.fxstreet.com/news/usd-index-gains-liable-to-be-capped-in-the-mid-upper-102-region-scotiabank-202308091147