DXY Index trades above the 93-level, lifted by improvements in business sentiment; the UK set for the most widespread pay rises in a decade

USD reached its three-week peak on Friday, primarily supported by the higher-than-expected retail sales data on Thursday. DXY Index is still trading above the 93-level at press time. Business sentiment from the University of Michigan showed that September sentiment rose by 71, compared with the 70.3 in August. USD extended its gains after the sentiment report. The Fed will hold its two-day policy meeting this week. Some investors suspect that the Fed will likely start the discussion on reducing its monthly bond purchases.

Many companies in the UK are proposing pay rises, and this might be the most widespread pay rise across the UK in a decade. About 44% of the businesses intend to raise pay in line with inflation. 24% of the businesses intend to raise pay above inflation. The prospect of higher prices will likely concern the Bank of England.