The US Dollar Index (DXY) is trading near 102.2, maintaining levels close to its 18-month peak reached last week. In September, the index rose from approximately 98.8 to over 102, marking a gain of nearly 2%.
Analysts are divided on the index's trajectory. Some experts anticipate a stall at a long-term trendline, while others suggest the dollar remains in an 18-year bull market that began in March 2008 at 70.698.
Market attention is focused on upcoming inflation data, including the consumer price index report. The Federal Reserve, which raised rates to a range of 3.75% to 4.00% on September 16, is scheduled to make its next decision on October 28.
CME FedWatch data indicates an 82.8% probability that the Federal Reserve will hold rates steady this month, compared to a 51% probability a month ago. Meanwhile, the University of Michigan consumer sentiment index dropped to 46.3 in October.
The performance of digital assets remains linked to the dollar's movement. While Bitcoin gained 6.14% in September despite a stronger dollar, the total crypto market value has declined by 1.4% so far in October.
