US Dollar Index Eyes Key Resistance at 99.75 Amid Fed Bets and Iran Tensions
The US Dollar Index (DXY) has regained positive traction after reversing part of its previous day's decline. The index is currently trading above the mid-99.00s, with rising Fed rate hike bets and escalating US-Iran tensions supporting the safe-haven Greenback.
Market expectations for an interest rate hike in September have increased following Federal Reserve Chair Kevin Warsh's hawkish comments on Friday. Additionally, a further escalation of tensions between the US and Iran has contributed to the strengthening of the DXY.
The Moving Average Convergence Divergence (MACD) has turned slightly positive, while the Relative Strength Index (RSI) is hovering near a neutral 50 area. However, the index remains capped by the clustered resistance just overhead, near the 99.70-99.75 region.