The US Dollar Index remains near two-week lows ahead of key US economic data, with geopolitical risks capping gains.
The US Dollar Index (DXY) traded at 98.97 on Monday, holding modest gains but struggling to break above $99.08 amid fading risk appetite. Escalating Middle East tensions, including fresh US-Iran skirmishes and Israeli operations in Lebanon, have pressured markets, while rising oil prices added to uncertainty.
The DXY has remained in the lower range of its two-week trading band, with technical indicators suggesting a bearish bias. The Relative Strength Index (RSI) sits near 45, reflecting soft momentum after failing to breach the 50 midline. Ahead, investors await the ISM Manufacturing PMI report and a series of employment data, culminating in Friday’s Nonfarm Payrolls release.
Market focus remains on whether upcoming economic figures will influence the Federal Reserve’s monetary policy outlook. Geopolitical risks and macroeconomic releases are likely to drive near-term volatility in the dollar.