DXY: The US Dollar Index is trading near a two-week high as traders await inflation data

The consumer price index is projected to indicate relatively flat inflation pressures of 3.3% year on year.

The US dollar index DXY fell to begin Wednesday trading as investors awaited the latest inflation report from the United States. The index, which measures the value of the dollar against a basket of foreign currencies, was hovering at 102.30, down from Tuesday's two-week high of 102.80.

The release of inflation figures is scheduled for tomorrow. Investors are watching to see if pricing pressures have eased more, but economists predict 3.3% annualised inflation increase. Anything less than 3.0% will be cause for celebration at the Federal Reserve, which will build on June's upbeat news.