US Dollar Index to dip towards 97.00-95.70 on easing Ukraine tensions – Westpac

FXStreet Insights Team FXStreet

The US Dollar Index (DXY) is flatlining around 99. DXY could test lower levels near term if momentum toward de-escalation in Ukraine continues, but weakness should prove fleeting with the Federal Reserve sticking resolutely to a hawkish path.

A move above 100 is on the cards in coming weeks

“A front-loaded Fed hike cycle should provide sustained tailwinds for DXY through 2022 though past Fed hike cycles caution that a sustained Fed-driven appreciation profile might take time to develop.”

“There’s more near term DXY downside to be had if momentum toward a de-escalation in Eastern Europe builds, possibly as low as 97.0-95.70, but with the US curve flattening aggressively and short end yield support continuing to build, DXY still looks headed to 100+ in coming weeks.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD bears Flirt with 61.8% Fibo. support near 1.1775 area

The EUR/USD pair extends the previous day's late pullback from the 1.1835 region and attracts some follow-through selling during the Asian session on Tuesday. Spot prices currently trade around the 1.1775-1.1770 area, down nearly 0.15% for the day amid a modest US Dollar strength.

GBP/USD holds losses below 1.3500 due to BoE rate cut bets

GBP/USD edges lower after two days of gains, trading around 1.3480 during the Asian hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US ADP Employment Change four-week average later in the day, along with speeches from Federal Reserve officials.

Gold bears seem hesitant as geopolitical risks and Fed rate cut bets counter USD uptick

Gold sticks to modest intraday losses below the monthly peak touched earlier this Tuesday, though it lacks follow-through selling and holds above the $5,150 level heading into the European session. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar attracts fresh buyers in the wake of the US Federal Reserve's hawkish outlook.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.