• The US Dollar Index plunged toward 106.00 on Wednesday.
• The US Dollar ticked lower, but its losses may be limited as markets are pricing in a more hawkish Fed.
• PCE data from October met expectations for inflation.

In Wednesday’s session, the US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, ticked 1% lower as markets assess the release of high-tier economic data including a Personal Consumption Expenditures (PCE) reading, the Federal Reserve’s (Fed) preferred gauge of inflation.