MUFG’s Lee Hardman notes the US Dollar is trading modestly weaker as US housing data disappoints and markets scale back expectations for an October Fed hike. Despite softer housing indicators, MUFG still expects one more Fed rate increase in December.

The US Dollar trades with caution against its peers ahead of Meta Q3 earnings later in the day. In the European trade on Wednesday, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades mildly lower to near 101.68.

ING’s Francesco Pesole notes the US Dollar (USD) is trading with a soft undertone as AI-related concerns and stretched positioning unwind. Short-term valuation metrics show most G10 currencies within 1.5 standard deviations versus the Dollar.

Jim Reid at Deutsche Bank notes that an early global equity sell-off tied to AI concerns, higher Oil prices and French sovereign worries reversed as US trading progressed, lifting the S&P 500.

Dow Jones futures hold steady near 52,730 during European hours on Wednesday. S&P 500 futures surge 0.25% to trade around 7,770, while Nasdaq 100 futures rise by 0.71% to trade near 29,880.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, edges higher on Wednesday, recovering further from a near three-week low touched the previous day.

Commerzbank’s Antje Praefcke notes that the Dollar faces limited upside in coming days as markets await the Federal Reserve and ECB meetings next week. A December Fed hike is priced in, but no further tightening is expected by Commerzbank. With only second-tier US data and Middle East risks not adding fresh support, Praefcke expects relatively stable EUR/USD and sees little reason for significant Dollar gains.

Artificial intelligence (AI) stocks pulled the NASDAQ 100 lower, but the Dow Jones Industrial Average rose to its highest in more than five weeks on earnings and cheaper Crude Oil. It climbed from the opening bell to just above 52,700.

Reports that Washington and Tehran have both given preliminary approval to a Qatar and Pakistan compromise have pushed the Dollar Index to its lowest since October 1. It fell from near 101.75 to about 101.65 on the first report and to just above 101.50 once Israel's Channel 12 added the terms.

TD Securities strategists argue the Dollar’s recent rally has peaked, with US Dollar Index (DXY) slipping below 102.00 as stretched positioning and consolidating yields cap upside.

Dow Jones futures gain by 0.38% to trade near 52,380 during European hours on Tuesday. S&P 500 futures surge 0.13% to trade around 7,740, while Nasdaq 100 futures lose by 0.12% to near 29,690.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is losing ground after posting modest gains and trading near 101.80 during the European hours on Tuesday.

Deutsche Bank strategists reports that US equities outperformed Europe, with the S&P 500 rising even as most constituents fell. The NASDAQ and Philadelphia semiconductor index led gains as the recent AI‑related selloff stabilised.

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 101.80 in the early European trading hours on Tuesday.

Brown Brothers Harriman’s Elias Haddad notes that recent AI-related equity weakness boosted bonds and weighed on the US Dollar (USD), despite a firm US Consumer Price Index (CPI) print that kept Federal Reserve (Fed) tightening expectations alive.

ING’s Francesco Pesole notes that recent AI-driven equity volatility has triggered a sharp drop in front-end US rates, but he does not see this as the start of a major Dollar downtrend. He argues the Dollar may lag other G10 currencies if tech-led stock instability persists, yet still sees scope for DXY to revisit 101.0 in coming weeks.

MUFG’s Lee Hardman notes the Dollar index has retreated from a year-to-date high near 102.95 and slipped back below its 200-week moving average around 102.10.

Dow Jones futures gain by 0.16% to trade near 52,300 during European hours on Monday. S&P 500 futures surge 0.59% to trade around 7,750, while Nasdaq 100 futures rise by 1.15% to near 29,730.

The US Dollar (USD) turns almost flat after giving back its opening gains, driven by rallying bond yields in France.

Fed Chair Warsh's last word before the quiet period was that he doesn't prejudge meetings, and the Dollar Index is lower on it, though the drop stalled near 101.60 twice. It fell from just above 102.00 to about 101.85 in one five-minute bar as he spoke, then slid to its lowest since October 1.

MUFG’s Derek Halpenny notes the US Dollar is broadly unchanged after Fed Chair Warsh avoided fresh policy guidance, reinforcing market pricing for a low chance of an October hike.

ING’s Chris Turner notes that the Dollar is benefiting from a flatter US yield curve as hot inflation data keeps short-dated rates elevated while long-dated Treasuries recover. He argues this backdrop typically favors the Dollar versus activity and emerging market currencies.

The US Dollar (USD) has depreciated sharply against most of its major peers over the last two days, hammered by a mix of lower US Treasury yields and dovish comments by Federal Reserve (Fed) officials.

OCBC strategists Sim Moh Siong and Christopher Wong discuss how AI-linked investment has become a key pillar of US growth, equities, yields and Dollar strength. They warn that US-centric AI financing concerns can flip these supports, creating a risk-off environment with lower US Treasury yields and a softer USD, highlighting the Dollar’s growing exposure to an AI investment slowdown.

Dow Jones futures rise by 0.19% to trade near 52,530 during European hours on Friday. S&P 500 futures gain 0.09% to trade around 7,800, while Nasdaq 100 futures inch higher by 0.03% to near 30,150.

Commerzbank’s Thu Lan Nguyen notes that despite stronger-than-expected US inflation, retail sales and producer prices, the Dollar and EUR/USD have largely reverted to pre-data levels.

The US Dollar (USD) delivers a negative reaction after remarks from Federal Reserve (Fed) Chair Kevin Warsh at the Fireside Chat with International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

The US Dollar (USD) has come under strong and renewed downside pressure on Thursday, briefly revisiting the area of multi-day lows amid the equally marked decline in US Treasury yields across the board and a generalised cautious tone amid market participants.

An artificial intelligence (AI) stock rout has pushed money into Treasuries, and the Dollar Index gave back its gain on Wednesday's Consumer Price Index (CPI) print. It dropped from Wednesday's high just under 103.00, its highest in 18 months, to just under 101.90, its lowest since October 7.

DBS Group Research economist Philip Wee notes that hotter-than-expected US CPI initially lifted the Dollar and US Treasury yields, but both moves faded as markets reassessed Fed tightening risks. He highlights the DXY Index’s failure to hold gains, reversing Fed hike probabilities, and growing concerns over growth, earnings and political uncertainty weighing on US equities and the broader USD rally.