• The index extends the breach of the 102.00 support.
• Investors continue to favour the risk complex on Tuesday.
• NFIB Index, IBD/TIPP Index, Fed’s Bullard next on tap.

The greenback, when tracked by the USD Index (DXY), sheds further ground and breaks below the 102.00 support to print new 2-month lows on turnaround Tuesday.

USD Index looks offered ahead of key US CPI

The dollar extends the sell-off and drops for the fourth session in a row on Tuesday, this time breaching the key support at 102.00 the figure with certain conviction in a context dominated by the investors’ appetite for the risk-associated universe.

Adding to the dollar’s decline, US yields continue to correct lower from recent peaks ahead of the publication of crucial US inflation figures on Wednesday and steady bets for a 25 bps rate hike by the Federal Reserve at its July 26 meeting.

Minor releases in the US docket will see the NFIB Business Optimism Index and the IBD/TIPP Economic Optimism index along with the speech by St. Louis Fed James Bullard (2025 voter, hawk