US Dollar rally is taking a breather – BBH

Source Fxstreet

Analysts at BBH share their near-term outlook for the US Dollar Index (DXY).

Chair Powell and other Fed officials have taken a more hawkish turn

"The dollar rally is taking a breather.  DXY is trading lower for the first time since last Monday near 106.165 after making a new cycle yesterday near 106.517.  It remains on track to test the November 1 high near 107.113."

"The euro is trading higher near $1.0645 but the clean break below $1.0755 sets up a test of the November 1 low near $1.0515.  Elsewhere, sterling is trading higher near $1.2465 after higher-than-expected CPI data.  USD/JPY is trading lower near 154.60 after making a new cycle high near 154.80 yesterday."

"The dollar rally should continue as recent data confirm persistent inflation and robust growth in the U.S.  In turn, Chair Powell and other Fed officials have taken a more hawkish turn.  This should keep upward pressure on U.S. yields, and this is what the Fed wants in lieu of another hike. We believe that while market easing expectations have adjusted violently after CPI and now Powell, there is still room to go.  When the market finally capitulates on the Fed, the dollar should gain further." 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, 2025
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
Dec 26, 2025
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
placeholder
Gold holds steady above $4,800 amid US-Iran ceasefire uncertainty Gold price (XAU/USD) trades on a flat note near $4,825 during the early Asian session on Tuesday. The precious metal steadies amid renewed geopolitical instability in the Middle East.  
Author  FXStreet
Apr 21, Tue
Gold price (XAU/USD) trades on a flat note near $4,825 during the early Asian session on Tuesday. The precious metal steadies amid renewed geopolitical instability in the Middle East.  
placeholder
Silver Price Forecast: XAG/USD plummets below $76 as oil price posts fresh weekly highSilver price (XAG/USD) is down almost 2.3% to near $76.00 during the European trading session on Thursday. The white metal faces selling pressure as oil prices extends its winning streak for the third trading day on Thursday.
Author  FXStreet
Yesterday 10: 10
Silver price (XAG/USD) is down almost 2.3% to near $76.00 during the European trading session on Thursday. The white metal faces selling pressure as oil prices extends its winning streak for the third trading day on Thursday.
placeholder
Gold drops below $4,700 on stronger US Dollar, Middle East tensions Gold price (XAU/USD) falls to around $4,690 during the early Asian session on Friday. The precious metal attracts some sellers amid a stronger US Dollar (USD) and elevated oil prices that stoked inflation worries. 
Author  FXStreet
9 hours ago
Gold price (XAU/USD) falls to around $4,690 during the early Asian session on Friday. The precious metal attracts some sellers amid a stronger US Dollar (USD) and elevated oil prices that stoked inflation worries. 
Related Instrument
goTop
quote