US Dollar Index holds position above 107.00 ahead of Retail Sales figures

• The US Dollar Index depreciated following Trump’s decision to delay the implementation of reciprocal tariffs.
• US Retail Sales are forecasted to contract by 0.1% MoM in January, following a previous increase of 0.4%.
• The Greenback may gain ground as US Core PPI inflation has increased the odds of the Fed delaying rate cuts.

The US Dollar Index (DXY), which tracks the US Dollar’s (USD) performance against six major currencies, remains stable after losses in the previous session. At the time of writing, the DXY hovers around 107.00, while yields on 2-year and 10-year US Treasury bonds stand at 4.31% and 4.53%, respectively.

The US Dollar faces pressure following President Donald Trump’s decision to delay the implementation of reciprocal tariffs. Additionally, declining US Treasury yields weigh on the Greenback, despite ongoing concerns about a global trade war.