US Dollar Index (DXY)
The dollar index eased on Monday as traders looked ahead to this week’s U.S. CPI release for fresh policy cues. Caution remains elevated amid ongoing U.S.–China trade talks, with markets watching the August 12 deadline for tariff decisions. Treasury yields dipped slightly, adding pressure to the greenback.
Technical Outlook:
The DXY is trading around 98.15, just above the 98.0 support zone.
- A break below 98.0 could expose 97.70 and 97.50 as the next downside targets.
- On the upside, regaining 98.50 would be the first sign of stabilization, opening a potential move toward 100.20.
EUR/USD
The euro approached a two-week high near 1.1675, supported by broad USD weakness and reduced expectations for near-term ECB rate cuts. Sticky inflation data in the eurozone has tempered dovish bets, while easing credit risk signals have boosted risk appetite toward the single currency.
Technical Outlook:
EUR/USD is holding firm above 1.1620 support.
- Sustained trade above 1.1700 could accelerate gains toward 1.1760.
- A pullback under 1.1620 would shift focus toward 1.1550.
USD/JPY
The yen strengthened toward a two-week high as Fed rate cut expectations grew, with some traders pricing multiple reductions this year. Mixed signals from the Bank of Japan kept the pair volatile, but safe-haven demand underpinned yen buying.
Technical Outlook:
USD/JPY is consolidating around 147.40.
- A push above 148.00 could spark a rally toward 149.00.
- A drop below 146.70 would likely see a retest of 145.00.
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