DXY Falls after Weak Retail Sales Data

2026-02-10 13:59 By Agna Gabriel 1 min. read

The dollar index fell to 96.8 on Tuesday after falling more than 1% over the previous two sessions, as softer US data strengthened expectations for Federal Reserve rate cuts.

A weaker-than-expected retail sales report showed consumer spending stalled in December, reinforcing the view that growth is slowing and supporting the case for policy easing.

Money markets are now pricing a higher probability of three Fed rate cuts in 2026, compared with expectations for two cuts a week ago.

Investors are turning to upcoming US jobs and inflation data for further signals on the economic outlook and policy path.

The dollar also faced pressure from concerns about foreign demand for US assets after reports that Chinese regulators advised financial institutions to limit holdings of US Treasuries to reduce concentration risks and shield against uncertainty around US economic policies.



News Stream
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