US Dollar Index struggles below 98.00 at the start of the week due to tariff concerns and Fed pressures
by VT Markets
/
Jul 15, 2025
Resistance Levels and Market Indicators
The DXY has bounced back from a low of 96.38 in July but is still below the important resistance level of 98.00. The 20-day and 50-day Simple Moving Averages (currently at 97.70 and 98.84) show resistance levels that are both moving downward, giving a bearish signal.
The Relative Strength Index (RSI) is at 49, indicating neutral momentum for the dollar. Factors affecting the US Dollar include monetary policy from the Federal Reserve, which changes its value through interest rate adjustments and quantitative strategies.
Looking Ahead
If there are questions about Powell’s independence, even subtly, markets will likely consider the medium-term effects. Generally, when political pressure is applied to central banks, it tends to add risk rather than lessen it, and this is seen quickly in currency values.
We will closely monitor Federal Reserve statements in the days following the CPI report, especially concerning any hinted institutional pressure. Their guidance will either boost market confidence or do little to ease concerns, particularly with rate meetings on the way.
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by VT Markets
Jul 15, 2025
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