US Dollar Index trims losses post-data, near 92.50

DXY drops and rebounds from the 92.40/45 band.
US Durable Goods Orders surprised to the downside.
CB’s Consumer Confidence came in above estimates.

Pablo Piovano FXStreet

The US Dollar Index (DXY) has so far met dip-buyers in the vicinity of 92.40 on Tuesday.

US Dollar Index depressed well below 93.00

The index extends the negative streak for the second session in a row amidst disappointing results from the US docket and the lack of traction in US yields.

In fact, June’s Durable Goods Orders expanded 0.8% inter-month and 0.3% when comes to core orders (stripping the Transport sector). Data from the housing sector saw house prices tracked by the FHFA’s House Price Index rising 1.7% MoM in May, and 17.0% on a year to May when measured by the S&P/Case-Shiller Index.

Still in the US data space, and on the brighter side, the always-relevant Consumer Confidence by the Conference Board rose to 129.1 for the month of July (vs.123.9 exp.).

The dollar is now seen to enter a consolidative phase ahead of the key FOMC event on Wednesday, where the QE tapering, inflation and potential move on rates will surely take centre stage.

US Dollar Index relevant levels

Now, the index is losing 0.10% at 92.53 and faces the next support at 92.45 (weekly low Jul.27)) followed by 92.00 (monthly low Jul.6) and then 91.51 (weekly low Jun.23). On the flip side, a break above 93.19 (monthly high Jul.21) would open the door to 93.43 (2021 high Mar.21) and finally 94.00 (round level).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.