• US Dollar DXY declines towards 104.20 after mixed S&P PMIs
• Fed's steady dovish bets also added to the decline.
• PCE, durable goods orders, Q2 GDP revisions will be the highlights on Thursday and Friday.

On Wednesday, the US Dollar as measured by the DXY index went on a dip towards 104.20, largely influenced by mixed S&P PMI figures and the markets continuing to bet on a dovish Federal Reserve's (Fed) outlook.

With signs of disinflation steadily emerging, market participants are growing confident of a potential rate cut in September, yet the Fed officials continue their cautious approach, remaining dependent on the data. As such, attention is turning to key upcoming data, namely core Personal Consumption Expenditures (PCE), and Q2 Gross Domestic Product (GDP) figures on Thursday and Friday.