US Dollar Index Tests 105 — Key Macro Drivers This Week
By Newera Research Desk
The US Dollar Index (DXY) climbed to 104.80 before pulling back slightly, with the dollar strengthening against most G10 currencies. The move is driven by repricing of Federal Reserve rate expectations — markets now price just one cut in 2026, down from three at the start of the quarter.
Key data this week: Tuesday's CPI print is the most important near-term catalyst. A reading above 3.3% would validate further dollar strength and likely push EUR/USD below 1.0750.
Trading the dollar: The DXY has historically struggled to sustain above 105 without explicit hawkish Fed guidance. Watch for profit-taking if the level is reached without a data catalyst.
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