• The US Dollar continues to lose ground following the mixed CPI data.
• US Consumer Price Index rose 2.9% YoY in July, against a 3% rise in June.
• A moderate increase in US inflation has sparked a debate on the extent of the Fed’s rate cuts in September.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against other six major peers, extends its losing streak for the fifth successive session. The DXY trades around 102.60 during the Asian session on Thursday. The Greenback faces challenges following Wednesday's Consumer Price Index (CPI) data, which showed a moderate increase in July's annual US inflation rate. This has raised expectations for at least a 25 basis point rate cut by the Federal Reserve (Fed) in September.

US headline Consumer Price Index (CPI) rose 2.9% year-over-year in July, slightly down from the 3% increase in June and below market expectations. The Core CPI, which excludes food and energy, climbed 3.2% year-over-year, a slight decrease from the 3.3% rise in June but aligned with market forecasts.

Investors are likely debating how much the Federal Reserve (Fed) will cut rates in September. While traders are leaning toward a more modest 25 basis point reduction, with a 60% probability, a 50 basis point cut remains a possibility. According to CME FedWatch, there is a 36% chance of the larger cut occurring in September.