The dollar index (DXY) continued to quote about recent minimums and was last seen at 98.44, the OCBC, Frances Cheung and Christopher Wong currency analysts point out.
Markets question USD status as reserve currency
“The daily impulse is bassist, while the RSI fell into overability conditions. Support in 98, 97.65. Resistance in 99.5, 100.10 and 101.20. The massive sale of the USD may seem exaggerated for now. The short position in USD is also a great commercial consensus and that requires some precaution, especially if there is any coverage of short weak.”
“Fundamentally, the markets are questioning the status of the USD as a safe reserve and refuge currency. The protectionist measures of the USA, the weakening of American exceptionalism and the increase in US debt are some of the catalysts that should keep the trade of ‘sell USD in rally intact. CHF and JPY during the forecast horizon, since the USD credibility problem takes prominence in the short term while the Fed cuts cycle focuses on the second half of 2025. “
“The USD can also quote weaker in the face of Axjs and antipodeanas currencies, but the fall of the USD can be more modest than in the face of the main currencies, since we consider the possible implication of tariffs in global growth, which can affect the pro-cyclical currencies of Axj. The week brings the preliminary PMIs of the US Beige of the Fed (Wednesday);
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
