US Dollar Index Edges Lower as Bears Target Two-Month Lows
The US Dollar Index (DXY) has been on a downward trend for two consecutive days after failing to consolidate above the 100.00 level on Monday.
This decline is attributed to moderate risk appetite, fueled by hopes of a negotiated end to the Iran war and lower oil prices, which are prompting investors to dial down bets on immediate Federal Reserve rate hikes.
US macroeconomic data released on Tuesday also failed to support the US Dollar. The JOLTS Job Openings declined to 7.359 million in June, below market expectations of 7.4 million, and Factory Orders for June showed a 0.3% contraction, missing expectations of a 0.2% increase.
According to technical analysis, the DXY has key supports at 99.40 and 99.20, with bears targeting the two-month lows around these levels.