The DXY maintains a bullish bias above 99.54, while EUR/USD and GBP/USD struggle against a strengthening dollar ahead of key central bank policy decisions.
USD supported by expected Fed rate hike and higher yields, with neutral to bullish bias.
EUR under pressure due to ECB rate hike being dominated by Fed expectations and bearish technical structure.
GBP weakens as BoE unlikely to hike, with technical breakdown expected.
The US Dollar Index holds above 99.54 as markets assign a 93% probability to a 25 basis point Federal Reserve rate hike. While the Fed prepares for potential policy tightening, the Euro and Sterling face downward pressure due to weaker relative rate outlooks and bearish technical structures.
The USD is supported by higher US yields and expectations of a more aggressive Federal Reserve tightening cycle compared to the more dovish outlooks for the ECB and Bank of England.