The U.S. Dollar Index holds above key support at 100.33 as hawkish Fed rhetoric and rising rate hike expectations pressure the EUR/USD and GBP/USD pairs.
Fed's hawkish stance and rising rate hike odds support the US Dollar Index above rising trendline support.
EUR/USD trades below moving averages and descending trendline, with RSI indicating bearish momentum.
GBP/USD faces resistance at 1.3405 and descending trendline, warranting a bearish bias unless 1.3436 is cleared.
Declining oil prices are noted as mitigating the stronger dollar and easing inflation concerns.
The U.S. dollar strengthened on Monday as markets priced in a 56% probability of a 0.25% rate hike in October. St. Louis Fed President Alberto Musalem signaled that persistent inflation necessitates further policy tightening, bolstering the greenback against major peers.
The dollar is rising due to a hawkish Federal Reserve stance and increased market expectations for a 0.25% interest rate hike in October.
The GBP/USD pair faces a bearish bias while trading below the 1.3405 resistance level, though it shows potential for a reversal if it clears 1.3436.