Dollar index hovers near 32-month low as US stimulus negotiations continue

The dollar remains on the offer near multi-month lows against major currencies.
Congress leaders vow to reach the long-awaited stimulus deal this year.

Omkar Godbole FXStreet Contributor

The dollar index (DXY) consolidates near 32-month lows reached Tuesday as the US Congress doubles down on efforts to break the long-standing stimulus impasse.

The DXY, which gauges the greenback's value against majors, is currently trading near 90.48, having printed a low of 90.42 on Tuesday. That was the lowest level since April 2018.

Senate Democratic leader Chuck Schumer was out on the wires a few minutes ago, stating that lawmakers are still talking on the coronavirus relief package and more talks are likely tonight (Tuesday, Eastern time).

Early today, House of Representatives Speaker Nancy Pelosi, a Democrat, hosted Senate Majority Leader Mitch McConnell, a Republican, as well as Senate Democratic leader Chuck Schumer and House Republican leader Kevin McCarthy, at the 7:30 p.m. ET (0030 GMT) gathering for stimulus discussions.

The negotiations have gone far too long, leaving the US economy vulnerable to downside shocks from the resurgence of coronavirus. Even so, risk assets have managed to stay bid, keeping the dollar under pressure. Expectations for global recovery on potential vaccines have kept investors from selling risk.

However, if the fiscal impasse persists, the focus could shift to near-term economic risks, possibly leading to risk aversion and a bounce in the safe-haven greenback.

Congress leaders, however, have vowed to reach a stimulus deal this year, which could be attached to the government funding bill. Most investment banks expect the dollar to continue losing ground in 2021.

Technical levels

Dollar Index Spot

Overview
Today last price	90.48
Today Daily Change	-0.01
Today Daily Change %	-0.01
Today daily open	90.49

Trends
Daily SMA20	91.45
Daily SMA50	92.48
Daily SMA100	92.87
Daily SMA200	95.64

Levels
Previous Daily High	90.82
Previous Daily Low	90.42
Previous Weekly High	91.24
Previous Weekly Low	90.61
Previous Monthly High	94.31
Previous Monthly Low	91.5
Daily Fibonacci 38.2%	90.58
Daily Fibonacci 61.8%	90.67
Daily Pivot Point S1	90.33
Daily Pivot Point S2	90.18
Daily Pivot Point S3	89.94
Daily Pivot Point R1	90.73
Daily Pivot Point R2	90.97
Daily Pivot Point R3	91.13

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

USD/JPY eases toward 160.00, awaits BoJ decision

USD/JPY is easing toward 160.00 in Tuesday's Asian trading. The Japanese Yen is finding fresh demand amid the expected Bank of Japan (BoJ) interest rate hike to 1%, following the conclusion of its two-day monetary policy review meeting later in the session.

AUD/USD turns south toward 0.7050, with all eyes on RBA verdict

AUID/USD has come under renewed selling pressure and nears 0.7050 in Asia on Tuesday. Traders prefer to stay on the sidelines ahead of the Reserve Bank of Australia (RBA) monetary policy decision before placing fresh bets. Meanwhile, the mixed Chinese activity data failed to inspire the Aussie bulls amid fading US-Iran deal optimism.

$4,400: Gold sellers set to retain control whilst below this level; focus shifts to Fed

Gold holds a pullback from six-day highs of $4,369 as buyers take a breather early Tuesday. The US Dollar looks to fill Monday’s bearish opening gap as markets temper Iran deal optimism. Technically, Gold remains exposed to downside risks whilst below the 21-day SMA near $4,400.

Forward Industries proposes all-stock acquisitions of Solana treasuries HSDT and SkyAI

Forward Industries (FWDI), the largest Solana treasury company, has proposed acquiring two smaller Solana-focused public companies in separate all-stock transactions. The firm stated that it sent letters of intent to acquire Solana Company and SkyAI.

RBA set for first interest-rate pause of 2026 as bets of further hikes weaken

The Reserve Bank of Australia is widely expected to leave the Official Cash Rate unchanged at 4.35% when it announces its monetary policy decision on Tuesday, marking a pause after three consecutive rate hikes delivered earlier this year. The decision will be announced at 04:30 GMT, accompanied by the Monetary Policy Statement.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.