US DOLLAR INDEX Forecast and News
US Dollar Index holds gains near 99.00 amid escalating geopolitical risks
The US Dollar Index (DXY) is extending its gains for the second successive day and trading around 99.00 during the Asian hours on Tuesday. The Greenback gains safe-haven support amid escalating geopolitical tensions. This upside follows the expansion of United States secondary sanctions against entities trading with Iran.
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EUR/USD clings to gains around 1.1200; focus is on US Midterms
EUR/USD looks to consolidate its daily gains, navigating around the 1.1200 region on Tuesday. The pair’s marginal advance comes on the back of the equally humble gains in the US Dollar, as investors remain cautious ahead of the US Midterm elections, with results expected to start emerging early on Wednesday in Europe.
GBP/USD extends the upside momentum past 1.3400
GBP/USD adds to its ongoing multi-day positive streak, managing to reclaim the area beyond 1.3400 the figure on turnaround Tuesday. Indeed, Cable’s continuation of the uptrend follows the Greenback’s inconclusive price action as the US Midterm elections are under way, while bets for a rate hike by the BoE on Thursday also underpins the upbeat tone.
AUD/USD weakens to two-week lows near 0.6960
AUD/USD clinches its second consecutive daily pullback as market participants continue to assess the RBA’s rate hike earlier in the day. Indeed, the pair slipped back toward the 0.6960 zone, or multi-day troughs, following the less-hawkish-than-expected message from the RBA after it hiked the OCR by 25 bps, as widely anticipated.
Crypto Today: Bitcoin, Ethereum, XRP under pressure as investors pull capital
Bitcoin trades downward at $76,566 on Tuesday, testing six-week lows. Ethereum, like Bitcoin, trades under pressure as it consolidates within a narrow support range. Meanwhile, Ripple hovers marginally above $1.25.
US Dollar Index edges up within range with midterm elections front and centre
The US Dollar Index is picking up from session lows but remains within previous ranges, below 102.00. The Greenback is drawing support from hostilities in Iran and higher Oil prices, but US political uncertainty is capping gains.
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US DOLLAR INDEX
The US Dollar Index (DXY, USDX) measures the value of the United States Dollar relative to
a basket of foreign currencies. It is a weighted geometric mean of the dollar’s value relative to the following
select currencies: Euro (57.6% weight), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish
Krona (4.2%) and Swiss Franc (3.6%).
The index started in 1973, following the dissolution of the Bretton Woods
system, with a base value of 100.00. Values are relative to this base – for instance, a current reading of 99.800
would indicate that the dollar has depreciated by 0.2% since the start of the index.
US Dollar Index on Wikipedia
INFLUENTIAL ORGANIZATIONS AND ECONOMIC DATA FOR THE US DOLLAR INDEX
The Federal Reserve (Fed)
The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy.
Fed official website, on X and Facebook
The US Government
The US Government and its Treasury Department impact the US Dollar Index. Events such as administration statements, budgets, new laws and regulations or fiscal policy can increase or decrease the value of the DXY.
US Gross Domestic Product
US Gross Domestic Product (GDP) refers to the total market value of all final goods and services produced in the United States. It serves as a gross measure of market activity, indicating the pace at which the nation's economy is growing or contracting. Generally, a high reading or better-than-expected number is considered positive for the Dollar Index, while a low reading is seen as negative.