DXYTHE DOLLAR INDEX .
key data report ,22nd the fed chairman Powell speaks and on 24th we are expecting Unemployment Claims.
watch this data as they will shape the trade directional bias.
Key Factors Behind Today's Drop
1. Rising Global Risk Appetite and Strong Foreign Currencies
Investors are showing increased appetite for non-dollar assets today. The euro, yen, and pound have all strengthened—most notably, the dollar fell nearly 1% against the yen after political developments in Japan and a positive outlook in Europe.
European optimism was boosted by encouraging business survey results, while political clarity in Japan lifted the yen and added further selling pressure on the dollar.
2. Lower U.S. Treasury Yields
Softening U.S. yields contributed to the dollar’s weakness. Lower yields typically make the dollar less attractive relative to other currencies, further encouraging outflows.
Investors are reassessing Federal Reserve rate cut odds and show caution ahead of the July 31 Fed meeting.
3.Uncertainty Over Tariffs and U.S. Policy
Heightened anxiety around upcoming U.S. tariffs (with an August 1 deadline) and erratic policy signals are dampening confidence in the dollar as a safe haven.
Speculation over Fed independence, including market chatter about potential challenges to Chair Powell’s role, has hurt trust in U.S. monetary policy stability, fueling additional dollar selling.
Conclusion
The dollar index’s drop from its ascending trend line today is the result of a perfect storm of increased foreign currency strength, risk-seeking investor sentiment, declining U.S. yields, persistent policy and tariff uncertainty, All of these factors have combined to drive sellers selling momentum ,they will continue to push the index to its lowest levels and my structure is giving me 94-94.5 level.
trading is 100% probailty,trade with caution.
