The US Dollar has shown signs of stabilization after recent declines, trading near the 102.90 level. While strong economic data, including better-than-expected retail sales and jobless claims figures, provided initial support, the overall market sentiment remains tilted towards a dovish Federal Reserve.

Economic Data and Market Sentiment

The release of robust US economic data has temporarily halted the US Dollar’s downward momentum. However, investors are carefully weighing the implications of these figures on the Fed’s monetary policy path. Despite the strong data, expectations for interest rate cuts in September remain elevated.

Technical Outlook

The US Dollar Index (DXY) is currently consolidating within a bearish trend. While there are signs of stabilization, the overall technical outlook remains negative. The index is trading below key moving averages, and momentum indicators suggest ongoing selling pressure.