DOLLAR INDEX
U.S. Dollar Index is trading below the resistance zone at 98.25. Prices are likely to decline and retest the support level at 95. This scenario would be invalidated if the aforementioned resistance zone is broken to the upside during today’s trading session.
|
Support |
95 | 93.50 | – |
| Resistance | 98.25 | 101.25 |
103.50 |
The US Dollar Index (DXY) experienced a sharp decline, continuing its losses for the ninth consecutive session and reaching its lowest level since March 2022, trading near 96.6. This drop comes amid growing pressure on the Federal Reserve following former President Donald Trump’s calls for interest rate cuts, in addition to mounting concerns over his proposed fiscal plan, which could add more than \$3 trillion to the national debt.
This significant decline has led the dollar to record its worst half-year performance in over 50 years, falling more than 10% since the beginning of 2025. Meanwhile, the euro rose to its highest level against the dollar since September 2021. Market attention is now turning to upcoming ISM Manufacturing PMI data and US labor market figures later this week, which are expected to influence the Federal Reserve’s next monetary policy moves.
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This move in the DXY really highlights how intertwined fiscal policy and Fed independence are becoming. Curious whether the 95 support will hold if political pressure continues to mount.