The US Dollar Index is pushing back toward the 100 level on Monday following a period of weakness, supported by robust American manufacturing data and geopolitical tensions surrounding US-Iran negotiations. The rebound comes after the greenback suffered a sharp sell-off last week when Washington and Tokyo conducted coordinated currency market intervention.
Manufacturing PMI figures released Monday exceeded analyst expectations, providing fundamental support for dollar bulls and easing concerns about the US industrial sector. Meanwhile, uncertainty around diplomatic talks between the United States and Iran is driving safe-haven flows back into the dollar as traders weigh potential outcomes and regional stability risks.
The recovery arrives at a critical juncture for currency markets, with traders already navigating heightened volatility from recent G7 intervention efforts and ongoing speculation about Federal Reserve policy direction. The dollar’s ability to hold gains near the psychological 100 mark will likely depend on continued economic data strength and developments in Middle East diplomacy.
FXnCO Insight
Dollar long positions near 100 DXY offer favorable risk-reward given manufacturing momentum and geopolitical uncertainty offsetting intervention pressures.
Source: FXStreet