DOLLAR INDEX
US Dollar Index is trading above the support zone at 98.25. If prices remain stable above this level, it is likely that the index will rise and retest the resistance zone at 101.25. This scenario would be invalidated if the mentioned support zone is broken to the downside.
|
Support |
98.25 | 96.20 | – |
| Resistance | 101.25 | 103.75 |
– |
The U.S. Dollar Index (DXY) showed relative stability at the level of 98.87, recording a slight decline of -0.02% compared to the previous session’s close. Futures contracts for the index also dropped by -0.07%, closing at 98.575 within a narrow trading range between 98.47 and 98.69.
From a financial and fundamental perspective, the dollar’s performance came amid anticipation of the U.S. Federal Reserve’s upcoming interest rate decisions. Market expectations point to a rate hold in the next meeting, with a potential cut in September. This anticipation has created volatility in investor sentiment, especially with the decline in 10-year U.S. Treasury yields, which negatively impacted the dollar’s appeal. Nevertheless, the index demonstrated relative strength on a monthly basis, posting a gain of over 2% in July its strongest monthly performance since 2019. This was supported by the weakness of the euro and some Asian currencies due to regional economic concerns. Overall, the dollar remains supported in the medium term, though its short-term movements will likely be driven by inflation data and upcoming decisions from the Federal Reserve.
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