DXY: Dollar Index Remains Stable as Traders Anticipate Inflation to Have Stopped at 5%

The US consumer price index report on Wednesday will be crucial for evaluating the Fed's work on inflation.

The dollar index (DXY) is hugging the flatline for the fourth consecutive day on Tuesday. The global reserve currency appears to be consolidating in advance of an important economic report – US inflation. Tomorrow's consumer price index will be an important indicator.

The headline rate of inflation in the United States has been steadily declining. Since June of last year, monthly price pressures have decreased. In spite of this, the consumer price index for March reached a 5% annual rate, and analysts anticipate the same for April.

Across the board, king dollar is relatively subdued prior to the main event. The EUR/USD fell below $1.10 this morning, a week after the euro reached a multi-month high of $1.1050. After reaching resistance at $1.2670 on Monday, the GBP/USD was trading near $1.26, falling slightly.