The US Dollar Index, which measures the dollar against a basket of six major currencies, has pushed to a 13-month high since May 2025 as two forces line up in its favour.
The first is the Federal Reserve. At its June meeting, the Fed under new Chair Kevin Warsh held rates in the 3.50%–3.75% range but adopted a noticeably more hawkish tone. Nine of the 19 policymakers now expect at least one rate increase before year-end, and markets are increasingly pricing a hike as soon as September. Higher-for-longer interest rates tend to draw capital into a currency, supporting the dollar.
The second is geopolitics. Earlier energy-driven inflation from the US-Iran conflict pushed US headline CPI to 4.2% in May, well above the Fed's 2% target. While reports now point to a roadmap toward a final US-Iran deal within 60 days, trimming some safe-haven demand, the truce remains fragile, and the inflation it created is still filtering through.
Resistance: 101.00
Support: 100.00
The hold above the 200-day moving average keeps the broader trend tilted in the dollar's favour.
However, SureShotFX publishes such market news on its website. And the best part of this news is it aligns with trading move as a recommendations to step next for trading.
The first is the Federal Reserve. At its June meeting, the Fed under new Chair Kevin Warsh held rates in the 3.50%–3.75% range but adopted a noticeably more hawkish tone. Nine of the 19 policymakers now expect at least one rate increase before year-end, and markets are increasingly pricing a hike as soon as September. Higher-for-longer interest rates tend to draw capital into a currency, supporting the dollar.
The second is geopolitics. Earlier energy-driven inflation from the US-Iran conflict pushed US headline CPI to 4.2% in May, well above the Fed's 2% target. While reports now point to a roadmap toward a final US-Iran deal within 60 days, trimming some safe-haven demand, the truce remains fragile, and the inflation it created is still filtering through.
Technical Snapshot
The DXY is consolidating just below the 101.00 zone and is steady near 100.00.Resistance: 101.00
Support: 100.00
The hold above the 200-day moving average keeps the broader trend tilted in the dollar's favour.
What Should Traders Watch Now?
Rather than chasing the move, many traders prefer to wait for confirmation around the 100.00 and 101.00 levels and manage risk with a clear stop-loss. The upcoming news release can swing the major pairs fast.However, SureShotFX publishes such market news on its website. And the best part of this news is it aligns with trading move as a recommendations to step next for trading.
