Today, the U.S. inflation rate was announced, revealing an increase to 2.9%, while the core inflation rate remained steady at 3.2% year-over-year.

The release of these inflation figures has led to a rapid weakening of the U.S. Dollar Index (DXY). However, the decline in inflation could encourage the Federal Reserve to consider further interest rate cuts this year. Nevertheless, any decision to lower interest rates would require consideration of other economic data, such as domestic unemployment rates

Source: Fxstreet