Dollar Index: Slowly Forming a Bottom

Expert market comment made by Chief Market Analyst Alex Kuptsikevich of the FxPro Analyst Team: Dollar Index: Slowly Forming a Bottom
FxPro | Pred 130 dňami

Dollar Index: Slowly Forming a Bottom

The US Dollar has been trading in a tight range against its major rivals for the past two weeks, and the Dollar Index is gently forming a bottom after an impressive oversold condition. However, traders are advised to be patient. Last August, the dollar was similarly oversold, which coincided with weakness in US equities. However, it took more than a month for the Dollar Index to rally strongly. In other words, a low Relative Strength Index is not in itself a buy signal. One should not succumb to FOMO and look for a low to buy. It makes much more sense to join the uptrend when it is already in place.

Earlier this week, the Fed sent a mixed signal to the markets. On the one hand, it lowered its GDP growth forecasts for the current year but also raised inflation expectations. The former brings us closer to a rate cut, while the latter makes us wary of a spike in inflation as we saw three years ago.

We would guess that Powell is hardly a hawk. He is quite reactive to the stimulus to cut rates but has more than once delayed action when it is necessary to raise rates. This time, too, he will likely be tolerant of some increase in inflation if he sees weakness in the labour market or consumer demand.

By the FxPro Analyst Team

Regulácia: FCA (UK), SCB (The Bahamas)
read more
ATFX Market Outlook 30th July 2025

ATFX Market Outlook 30th July 2025

The U.S. goods trade deficit for June fell to its lowest level in nearly two years, potentially fueling a strong rebound in Q2 GDP. U.S. stocks closed lower on Tuesday, with some corporate earnings disappointing investors. The S&P 500 and Nasdaq pulled back from record highs as market participants awaited the Federal Reserve’s policy announcement.
ATFX | Pred 1 h 54 min
Yen Gains Poise Ahead of Fed and BoJ Decisions

Yen Gains Poise Ahead of Fed and BoJ Decisions

Markets tread cautiously as traders await key decisions from the Fed and BoJ. The Yen gains ground, gold stays rangebound, and the Kiwi weakens on risk aversion. A softer Aussie CPI pressures AUD/USD, while the US Dollar Index lingers below 99.00. All eyes are on central bank guidance to shape the next move across currencies and commodities.
Moneta Markets | Pred 2 h 48 min