US Dollar Index has fallen back to support from the 200-Day Moving Average at 105.40. DXY could decline further on evidence of easing inflation and slowing growth, economists at MUFG Bank report.

US yield curve has become even more inverted this month

“The US Dollar is open to further weakness in the near-term especially if the release of the latest ISM manufacturing survey, PCE deflator report and/or Nonfarm Payrolls report reveals more evidence that inflation pressures are easing and growth is beginning to slow more notably heading into next year.”

“The US yield curve has become even more inverted this month signalling a higher risk of recession even as financial conditions have eased recently”.