Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnAISquareMore
United States Dollar Index holds gains near 99.00 amid escalating geopolitical risks

United States Dollar Index holds gains near 99.00 amid escalating geopolitical risks

FXStreetFXStreet2026/08/25 03:48
By:FXStreet

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the second successive day and trading around 99.00 during the Asian hours on Tuesday.

The Greenback gains safe-haven support amid escalating geopolitical tensions. This upside follows the expansion of United States (US) secondary sanctions against entities trading with Iran. US Treasury Secretary Scott Bessent warned that a major financial institution could face enforcement action this week, explicitly clarifying that Chinese entities will not be exempt from these measures.

Despite these geopolitical tailwinds, further gains for the Greenback may be capped by the US Treasury's decision to double its buyback operations for longer-dated bonds. Reports indicate that Secretary Bessent could utilize up to $1 trillion from the Treasury General Account to finance these repurchases, potentially altering market liquidity and yields.

Market participants are turning their focus toward a dense schedule of U.S. economic data releases this week. Key indicators on the horizon include Tuesday's consumer confidence report and Wednesday's Personal Consumption Expenditures (PCE) price index, which serves as a crucial inflation metric for central bank policy.

The week will culminate on Friday when Federal Reserve Chair Kevin Warsh delivers his address at the annual Jackson Hole symposium. Investors anticipate that his speech will provide critical insights into the Fed's monetary policy outlook and the near-term trajectory of the US Dollar.

Strategists at Scotiabank highlight that the “calendar and event risk this week is significant,” noting that a busy slate of data and policy signals is encouraging investors to reassess exposures. In their view, the “potential for some moderate gains in the USD broadly in the short run is high as investors pare back positioning,” with the Dollar seen benefiting from precautionary position trimming rather than a wholesale shift in the underlying trend.

Technical Analysis: DXY rises despite a bearish near-term tone

In the daily chart, Dollar Index Spot trades at 99.00, maintaining a bearish near-term tone as it holds beneath both the short-term and medium-term Exponential Moving Averages (EMAs). The 14-day Relative Strength Index (RSI) at 35 hovers just above oversold territory, suggesting downside momentum is still dominant even if selling pressure is not yet extreme.

On the topside, immediate resistance is seen at the nine-period EMA near 99.22, with the 50-period EMA around 99.98 forming a higher cap that would need to be reclaimed to ease the current downside bias. With no clear structural supports indicated below spot in this dataset, the index remains vulnerable to further slippage while it trades under these moving average barriers.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

Nomura: Hong Kong hedge funds are optimistic about AI but hesitant to increase positions; Anthropic IPO may trigger an AI sell-off in October

After meeting with 45 investors in Hong Kong, Nomura strategist Suda found that this group of investors is generally "exhausted"—although their year-to-date returns remain positive, they have become sidelined after a significant pullback in July. Most investors are cautious in the short term but bullish on AI in the long term, yet are unwilling to increase net buying. The Anthropic IPO could take place as early as October, and the market is concerned that AI stocks may experience a "rise-then-fall" pattern similar to what happened during the SpaceX listing.

华尔街见闻2026/08/25 04:11

Major breakthrough in Moderna(MRNA.US) mRNA cancer vaccine ignites market sentiment! The biotech sector revaluation may have just begun

Moderna's phase 3 clinical trial for melanoma has yielded positive results, serving as a catalyst for the entire biotech sector and driving widespread gains in biotech ETFs. This also reignited market confidence in next-generation therapeutic technologies.

智通财经2026/08/25 04:06
Major breakthrough in Moderna(MRNA.US) mRNA cancer vaccine ignites market sentiment! The biotech sector revaluation may have just begun

Asia-Pacific stocks under pressure, South Korea leads losses, SK Hynix drops as much as 6%, Bitcoin breaks above $80,000, US Treasuries fluctuate at high levels

Samsung Electronics and SK Hynix both fell by more than 4% and 6% respectively during Monday trading, dragging South Korea's KOSPI index down by over 4% at one point and putting pressure on Asia-Pacific technology stocks. A combination of factors—including Samsung's shareholder return plan falling short of expectations, SK Hynix's labor union rejecting a wage agreement, and Nvidia experiencing its longest losing streak since 2022—have weighed on the market. Investors are now anxiously awaiting this week's Nvidia earnings report and the Jackson Hole meeting.

华尔街见闻2026/08/25 04:01