The U.S. Dollar Index (DXY) maintains a bearish bias after breaking key support levels. Markets are pricing in a less aggressive Fed, mixed economic data, and rising risk appetite, all of which limit demand for the USD as a safe haven.
🔑 Key Factors
Monetary policy: The Fed no longer shows the hawkish tone of 2022–2023; rate cuts are expected in the coming quarters, reducing the dollar’s appeal.
Macro data: Inflation is more under control and signs of economic cooling → fewer arguments to keep rates high.
Market sentiment: Flows into stocks and crypto reflect greater risk appetite, reducing USD demand.
External factors: The ECB and BoJ are showing signs of tightening → the interest rate differential with the U.S. narrows, cutting the dollar’s advantage.
🔑 Key Factors
Monetary policy: The Fed no longer shows the hawkish tone of 2022–2023; rate cuts are expected in the coming quarters, reducing the dollar’s appeal.
Macro data: Inflation is more under control and signs of economic cooling → fewer arguments to keep rates high.
Market sentiment: Flows into stocks and crypto reflect greater risk appetite, reducing USD demand.
External factors: The ECB and BoJ are showing signs of tightening → the interest rate differential with the U.S. narrows, cutting the dollar’s advantage.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.