XE Market Analysis: Europe – Dec 14, 2017

The USD index (DXY) fell 0.8% over the last day in logging a eight-day low of 93.34 during Asian trading today. The index has since settled around 92.45. The losses follow yesterday’s cooler than expected CPI data out of the U.S. ,which was followed by an as-expected 25 bp rate hike from the Fed, while retaining the outlook for three tightenings in 2018 in its dot-plot, rather than four, which had been speculated on by markets. The Fed’s statement also noted that headline and core inflation had declined this year.