Investors remain concerned about the state of the US economy given the aspirations of the current administration in regards to its fiscal political policies and seek safety elsewhere in order to insulate their holdings.
On the geopolitical front, investors remain cautious towards the state of affairs in the Middle East, assessing the potency of the recent ceasefire announcement from President Trump late Monday, which appears increasingly fragile, since Israel accused Iran of violating the deal and pledged renewed military action against Tehran and runs the risk of reigniting tensions.
Furthermore, the renewed attacks from President Trump on the Chair of the Federal Reserve, Jerome Powell, were once again compelling and soured investors sentiment.
The Euro has evidently capitalized on the weakness of the greenback, surpassing the $1.17 level earlier today and climbed to an area last seen before in September of 2021, as investors continue to divest holdings from the US and allocate it across other major markets.
The British Pound has been another popular destination for investors amidst US uncertainty and more specifically the Swiss Franc has proven yet again to be a reliable allocation for those investors that seek safety, with the haven currency receiving sizeable inflows and strengthening to ten and half-year highs
Technical Analysis
DXY Chart – The greenback slips for the 4 th straight session reaching levels once seen before in March of 2022
Resistance: 98.80 (R1), 100.00 (R2), 101.50 (R3)
Support: 96.00 (S1), 94.70 (S2), 93.50 (S3)