US Greenback (USD) fell broadly in opposition to most currencies. DXY was final at 99.59, OCBC’s FX analysts Frances Cheung and Christopher Wong be aware.
Draw back dangers are seen
“Protected haven together with CHF, JPY and gold strengthened extra at first in response to a CNN report that new intelligence suggests Israel is making ready potential strike on Iranian amenities. However because the session continued, different FX within the area (together with THB, MYR, KRW) performed catch-up on features.”
“We reiterate that Moody’s downgrade comes as a well timed reminder {that a} rise in price range deficit within the absence of fiscal self-discipline and heightened coverage uncertainty (owing to Trump tariffs) just isn’t sustainable and additional query USD’s standing as a secure haven and first reserve forex. As doubts over USD proceed to develop, a continuation of diversification flows out of US property, together with the USD, in addition to extra proactive hedging (to cut back USD publicity) can weigh on USD over time, whereas different currencies profit.”
“The thematic of promote USD on rally might persist for longer. Bullish momentum on each day chart is fading whereas RSI fell. Draw back dangers are seen. Assist at 99.10 ranges. Resistance at right here at 100.10 (21 DMA), 100.80 (23.6% fibo retracement of 2025 peak to trough) and 101.40 (50 DMA).”
