The Greenback traded in a vacillating fashion on Wednesday, always against the backdrop of the unabated uncertainty surrounding the Middle East conflict, at the time when bets for Fed rate hikes continued to gather pace.

The Dow Jones Industrial Average (DJIA) is having its moment, holding a modest gain near 50,700 in the mid-session while the S&P 500 and Nasdaq Composite quietly leak red.

Brown Brothers Harriman’s (BBH) Elias Haddad notes improving risk sentiment as Iran-related worries ease, with Oil softer, US equities firmer and yields retracing.

The US Dollar (USD) is trading sideways against its main peers on Wednesday. The US Dollar Index (DXY), which measures the value of the Dollar against a basket of peers, flatlines around 99.00 at the time of writing, halfway through the weekly range, with investors awaiting clarity from Iran’s war.

US stock futures ticked higher during European trading on Wednesday ahead of the Wall Street opening bell. Dow Jones futures climb 0.24% to clear 50,650, while S&P 500 futures rise 0.15% toward 7,550. Meanwhile, Nasdaq 100 futures gain 0.23%, trading near 30,150.

Rabobank’s Molly Schwartz notes that United States (US) Treasury yields were mostly flat with a slight bull-steepening bias, while the US Dollar Index (DXY) was little changed. She highlights that the US OIS curve still prices a high probability of further rate hikes.

Deutsche Bank analysts note the S&P 500 hit a fresh record, extending its year-to-date gain to nearly 10%, supported by renewed AI enthusiasm and easing fears around the US-Iran situation.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.10 during the early European trading hours on Wednesday.

The Dow Jones Industrial Average (DJIA) is the odd one out following a long weekend, and that should bother anyone leaning into this rally.

Rabobank strategists Jane Foley and Molly Schwartz note that speculative US Dollar (USD) positioning has slipped into net short territory for the first time since early March, after safe-haven flows linked to the Iran war had previously supported the Dollar.

MUFG analysts note the US Dollar’s mixed performance as markets reassess Fed policy amid stronger inflation data and rising yields. They highlight the 2-year Treasury yield hitting new highs and see scope for further upside in US rates.

Brown Brothers Harriman's (BBH) Elias Haddad reiterates its constructive view on the Dollar Index (DXY), warning it may overshoot the upper end of its 96.00-100.00 range in the near term.

The US Dollar (USD) trades almost flat ahead of the United States (US) stock markets opening after an extended weekend during the late European trading session on Tuesday, with the US Dollar Index (DXY) wobbling around 99.00 after giving back its early gains.

MUFG’s Derek Halpenny notes that optimism over a potential US–Iran peace deal initially pushed the Dollar lower alongside a sharp drop in Brent crude, but subsequent US strikes have revived uncertainty.

Dow Jones futures advance 0.53% above 50,900 during European hours ahead of the US regular opening on Tuesday. Meanwhile, the S&P 500 rise 0.54% toward 7,550, and the Nasdaq 100 futures gain 0.73% above 29,750.

Deutsche Bank strategists highlight that the S&P 500 has logged an eighth consecutive weekly gain, supported by falling Oil prices and easing stagflation fears. Futures are modestly higher after the long weekend, though slightly below pre-strike levels.

TD Securities strategists argue that, despite stronger United States (US) data and renewed "US exceptionalism" narratives, they are not ready to abandon their bearish US Dollar (USD) thesis for 2026.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, regains positive traction on Tuesday and reverses part of the previous day's slide to a one-week low.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after registering modest losses in the previous day and trading around 99.10 during the Asian hours on Tuesday.

The US Dollar (USD) kickstarts the new trading week on the back foot as investors continue to assess news that a potential US-Iran deal could be clinched anytime soon.

Citing mediators, the Wall Street Journal (WSJ) reported on Monday that progress toward finalizing an agreement to end the war between the United States (US) and Iran has slowed down on Monday, citing ongoing disaggreements over Iran's nuclear program and Tehran's demand of financial relief.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the Dollar index (DXY) risks overshooting the top of its 96.00-100.00 range in the near term as resilient United States (US) growth outpaces peers.

Dow Jones futures advance 0.82% to near 50,100 during European hours on Monday. Meanwhile, the S&P 500 rise 0.93% above 7,550, and the Nasdaq 100 futures gain 1.38% above 29,950. Trading activity is expected to stay subdued as US regular markets will be closed due to the Memorial Day bank holiday.

The US Dollar (USD) gapped lower at the start of Monday’s session, retreating from the 99.30 area, the lower limit of last week’s trading range, to 99.00.

MUFG’s Lloyd Chan notes that higher US 2-year yields and elevated Brent prices are supporting broader USD strength, with markets now fully pricing one Fed rate hike by January 2027.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.05 during the Asian trading hours on Monday. The DXY loses momentum as the prospect of a deal to end the Iran war buoyed risk appetite. 

Scotiabank’s global FX strategy team highlights the Dollar is ending the week on the offensive, with modest gains against most G10 currencies as markets focus on US–Iran developments and the swearing-in of Fed Chair Kevin Warsh.

MUFG’s Lloyd Chan notes that elevated US yields and increased expectations of further Federal Reserve (Fed) tightening are supporting the US Dollar (USD) in the near term. The 2-year and 10-year yields remain high, and markets are pricing a higher probability of Fed action by year-end.

OCBC’s Christopher Wong notes the Dollar Index is consolidating as it tracks UST yields, with softer Oil and slightly lower yields capping USD upside. The bank highlights key resistance around 99.40 and 100.50/60 and support near 98.30/50 and 97.50/60.

Deutsche Bank’s Jim Reid notes that improved sentiment around a potential Iran deal helped the S&P 500 recover earlier losses and close slightly higher.