The first full week of August will test whether the US Dollar can recover from its sell-off during the last week of July as investors shift their attention from central bank decisions to a fresh round of economic data.

The US Dollar Index (DXY) struggles to hold its early recovery on Friday as the fallout from suspected Japanese intervention and the possibility of direct action by the United States (US) keep the Greenback under pressure.

The Dow Jones Industrial Average trades just beneath 52,500 on Friday, up around 230 points and roughly 1.6% under the record set early in July.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the Dollar stabilized after a sharp sell-off linked to suspected USD/JPY intervention, but argues the broader USD rally since May has likely ended, with US Dollar Index (DXY) expected to move back into a 96.00–100.00 range.

The US Dollar Index (DXY) attempts to cling above the 100.00 psychological level on Friday after a nearly 1.5% selloff in the previous three days, as the Federal Reserve's (Fed) lack of forward guidance at Wednesday's monetary policy meeting raised concerns that the bank might fail on its commitment

ING’s Francesco Pesole notes the Dollar’s post-FOMC selloff has accelerated, with DXY briefly dipping below 100.0 and returning to levels seen after Kevin Warsh’s June press conference. He highlights stretched net-long USD positioning versus G9 and large EUR/USD shorts.

Dow Jones futures surge 0.59% to trade around 52,680 during European trading hours on Friday. Meanwhile, S&P 500 futures rise 0.44% to trade near 7,500, while Nasdaq 100 futures rise 1.10%, trading near 28,540, respectively.

The US Dollar (USD) attempts to snap its three-day losing streak on Friday. In European trade, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.27% higher to near 100.23. The DXY attracts bids after posting a fresh six-week low at 99.85.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, gains some positive traction and climbs back above the 100.00 psychological mark during the Asian session on Friday.

The rebound in United States equities on Thursday is real, and it is one name deep. The NASDAQ 100 trades near 27,950 after a gain of almost 3%, having printed its lowest level in two months in the 27,200 area inside the opening minutes.

The US Dollar Index (DXY) tumbles on Thursday as a sharp surge in the Japanese Yen (JPY) fuels speculation that Japanese authorities intervened to support the currency. USD/JPY plunged nearly 480 pips, falling below the psychological 160 mark and dragging the Greenback lower across the board.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the US Dollar (USD) is struggling to recover after the Federal Reserve’s (Fed) hawkish hold, as Chair Kevin Warsh’s tough inflation rhetoric failed to convince markets.

ING's Knightley and Turner highlight that a neutral‑hawkish Fed hold has slightly weakened the Dollar, reversing positioning that had shifted toward a rate hike.

The US Dollar gives back its opening gains and flips on its head during the European trading session on Thursday.

MUFG’s Derek Halpenny highlights that the Federal Reserve’s decision to leave rates unchanged, and Chair Warsh’s failure to clearly justify the pause, triggered a sell-off at the long end of US Treasuries and modest Dollar weakness.

TD Securities strategists note that the US Dollar (USD) weakened after the July Federal Open Market Committee (FOMC) rate hold and Chair Warsh’s lack of hawkish guidance.

MUFG’s Derek Halpenny says the Fed’s decision to hold rates, combined with Chair Warsh’s unclear justification, steepened the Treasury curve and weakened the dollar. Rising inflation expectations and concerns over Federal Reserve (Fed) credibility now point to further depreciation risk.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after two days of losses and trading around 101.00 during the European hours on Thursday.

ING’s Chris Turner notes that US real yields and the US Dollar (USD) fell after a confusing FOMC press conference, as markets sensed the Federal Reserve (Fed) may avoid further tightening.

The US Dollar (USD) trades slightly positive in the Asian session on Thursday after a juggernaut fall the previous day. At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.12% higher to near 100.92.

The Federal Reserve left its target range at 3.50% to 3.75% at 18:00 GMT, three voting members dissenting in favour of an immediate quarter-point increase. Equities bought the hold and ignored the split, the index adding roughly 200 points in the minutes after the headline to trade near 52,100.

The Federal Reserve held its target range at 3.50% to 3.75% at 18:00 GMT on a 9-3 vote, with three voting members preferring an immediate quarter-point increase.

A 9-3 vote held the federal funds target range at 3.50% to 3.75% at 18:00 GMT, the three dissenters all preferring an immediate quarter-point increase.

Scotiabank strategists Shaun Osborne and Eric Theoret note the US Dollar (USD) is narrowly mixed to softer ahead of the Federal Open Market Committee (FOMC), with swaps pricing a modest chance of a hike but the bank seeing that risk as much lower.

The Dow Jones Industrial Average trades just above 51,800 on Wednesday afternoon, down roughly 900 points and 1.7% from Tuesday's close. The session high just above 52,800 printed before 09:00 GMT, and the tape has sold in one near-continuous line ever since.

BNY’s Geoff Yu notes that USD exposure is elevated across global portfolios, with strong buying in both equities and bonds generating sizeable rebalancing signals. The bank recommends increasing FX hedges instead of selling U.S. assets, as hedge ratios remain low and Dollar allocations high.

BNY’s Geoff Yu notes the US Dollar (USD) enters the Federal Open Market Committee (FOMC) with strong recent demand but stretched positioning, as cross-border buying and late-July spot demand remain supportive.

ING strategists Francesco Pesole and Frantisek Taborsky expect the Federal Reserve to keep rates unchanged, with two dissenters possibly voting for a hike, limiting downside in front-end USD rates.

The US Dollar (USD) stands at a critical juncture as financial markets prepare for the Federal Open Market Committee's (FOMC) upcoming interest rate announcement.

Dow Jones futures gain 0.11% to trade around 53,000 during European trading hours on Wednesday. Meanwhile, S&P 500 futures rise 0.16% to trade near 7,480, though Nasdaq 100 futures decline 0.17%, trading near 27,870, respectively.