DXY Has 99 Problems, Getting Above 100 Is One!Here we have TVC:DXY on the Weekly Chart.
Now clearly outlined we can see there is a very valuable level here @ 99-100 that the USD:
- Used as Resistance from 2015 til the Bullish Breakout in April 2020
- Used as Support from 2023 til the Bearish Breakdown in April 2025
Fundamentally is a very sketchy scenario because with the Shutdown causing lack of important data needed, The Federal Reserve is making Interest Rate cuts. This weakens the Dollar because it makes it less favorable to Foreign Investing.
On the flip side, Consumers Dollars are able to stretch further allowing them to purchase more but unfortunately we still combat the inflated prices on goods. Companies have the ability to get there raw ingredients cheaper, resume hiring processes, etc.
The slow creeping rise in Inflation has the Federal Reserve in a position to want to be ready to potentially Hike Rates when the Inflation, they believe, from the Tariffs will hit but as of yet, the recent CPI numbers came out not as hot as they thought, possibly playing into the reason for making the latest cut.
Nevertheless, by the last FOMC meeting, it would seem that there is a chance that was the last cut this year that may be made, if:
- Inflation continues to rise
or
- Continued softening labor market
