DXY remains below the 100 mark amid softer Fed rate hike bets and US trade policy uncertainty, per analysis.
The US Dollar Index (DXY) continues to struggle below the 100 level, reflecting persistent headwinds from monetary policy and trade risks. European currencies, excluding the volatile Japanese Yen, have shown relative strength, underscoring the greenback’s underlying weakness.
Futures markets now price a 58% chance of a September Federal Reserve rate hike, down from 72% after last week’s FOMC meeting. Trade policy uncertainty and legal challenges to tariffs add further pressure, with courts refunding $100bn in tariffs following a Supreme Court ruling.
DXY’s repeated failures to reclaim 100 highlight growing bearish sentiment, though market reaction remains muted amid mixed signals.