US Dollar Forecast: DXY Rises Toward 200Day MA as ISM Services Beats Forecasts
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The Federal Reserve delivered its second consecutive interest rate cut on Wednesday, lowering its benchmark rate by a quarter-point to a range of 3.75% to 4.0%. The move, however, failed to ignite a broad… The dollar index traded in a narrow range, mostly between 97 and 99, in October. The index has been stuck in neutral, but all fiat currencies have continued to lose value over the past month. Select market data provided by ICE Data Services.
The US Dollar Index spot price increases when the USD exchange rate strengthens its position in comparison to other currencies. The market data on this page is currently delayed. The New Highs/Lows widget provides a snapshot of US stocks that have made or matched a new high or low price for a specific time period.
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It serves as a gross measure of market activity, indicating the pace at which the nation’s economy is growing or contracting. Generally, a high reading or better-than-expected number is considered positive for the Dollar Index, while a low reading is seen as negative. I didn’t have to search how to use the platform, it’s intuitive. The support chat was there when I had a tiny issue. At the end of 2019, the DXY traded at 96.5, meaning that the US dollar has slightly depreciated versus the basket of currencies since its establishment in 1973.
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- Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts.
- Treasury yields moved lower across the curve as fixed income markets responded to the deteriorating labor outlook.
Technicals
Its slope indicates the strength of the trend. Longer averages are used to identify longer-term trends. Shorter averages are used to identify shorter-term trends. Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. The Barchart Technical Opinion widget shows you today’s overall Barchart Opinion with general information on Elliott waves indicator how to interpret the short and longer term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods.
The dollar faced additional pressure from cross-currency moves. The euro climbed 0.3% to $1.15225, while sterling advanced to $1.3088 after the Bank of England left rates on hold. Though widely expected, the BoE’s decision helped preserve yield differentials relative to the dollar, reinforcing selling pressure in the DXY basket. The yen also strengthened, with USD/JPY falling 0.4% to 153.51, further dragging on the index. In theory, the direction of the moving average (higher, lower or flat) indicates the trend of the market.
Cross-Currency Moves Reinforce Dollar Weakness
Also, hawkish comments from Chicago Fed President Austan Goolsbee and Cleveland Fed President Beth Hammack were supportive of the dollar when they said they favored no additional Fed rate cuts. A few macroeconomic factors have a significant impact on the US Dollar Index price. These include, among others, inflation and deflation in the US dollar and foreign currencies included in the comparable basket, as well as economic growth and recessions in the respective countries.
Treasury Yields, Dollar Fall as Data Drought Goes On
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US Dollar Forecast: DXY Falls as Layoff Surge Fuels Fed Rate Cut Bets
The US Dollar Index was introduced by the US Federal Reserve in 1973 after the dismantling of the Bretton Woods Agreement. The constituents of the foreign currency basket were altered only once when several European currencies were subsumed by the euro in early 1999. Nasdaq dips 1.9% on jobs fears & AI valuation worries. Asian tech stocks follow suit, sparking broad market sell-off. Barchart Insider Commentary brings you breaking stories affecting today’s markets.
- New delayed trade updates are updated on the page as indicated by a “flash”.
- The market data on this page is currently delayed.
- The US Dollar Index (DXY) serves as a benchmark for measuring the relative value of the American dollar to a basket of currencies of the US’s key trading partners.
- The dollar index traded in a narrow range, mostly between 97 and 99, in October.
- The Quote Overview page gives you a snapshot view for a specific index.
Fedspeak, the US Supreme Court and US data could challenge the Dollar’s current strength. Aussie and Pound are on divergent paths as respective central banks meet next week. The US Dollar Index (DXY) serves as a benchmark for measuring the relative value of the American dollar to a basket of currencies of the US’s key trading partners.
Copyright © 2025 FactSet Research Systems Inc.Copyright © 2025, American Bankers Association. CUSIP Database provided by FactSet Research Systems Inc. SEC fillings and other documents provided by Quartr.© 2025 TradingView, Inc. You can follow the ups and downs of the Dollar Index at Capital.com. Always stay on top of the latest price developments with our DXY live chart. Follow the rate of the US Dollar Index (DXY) in real-time at Capital.com to spot the best trading opportunities.
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