TD Securities analysts expect the FOMC to maintain current interest rates, with a cautious approach supported by recent data. They note that while Chair Powell may not commit to near-term rate cuts, the median official still anticipates easing this year.

The 'Sell America' narrative continues to dominate market sentiment. The US Dollar Index (DXY) hit its lowest level since February 2022 on Tuesday, as investors positioned ahead of the Federal Reserve’s (Fed) monetary policy decision due on Wednesday.

The Dow Jones Industrial Average (DJIA) took a header on Tuesday, peeling away from the tech-bolstered pack of major indexes and falling around 500 points, or one percent, on an otherwise quiet trading day.

The report by MUFG highlights the impact of US tariff policy uncertainty and the risk of coordinated FX intervention by US and Japanese authorities on the Dollar.

UBS's Paul Donovan comments on the current state of the Dollar, noting that while it remains weaker, it has not significantly declined further. He suggests that the Dollar is losing market share, which indicates a slide into mediocrity rather than a dramatic decline.

Brown Brothers Harriman's (BBH) report indicates that the USD continues to trade defensively, with expectations for the dollar index (DXY) to hold above its July and September 2025 lows.

In its FX Weekly Dispatch, TD Securities maintains a bearish outlook on the USD, driven by a backdrop of solid global growth and declining safe-haven appeal.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a weaker note near 97.00 during the Asian trading hours on Tuesday. The US ADP Employment Change and Consumer Confidence reports are due later on Tuesday. 

US equities opened the week on a positive note, with the S&P 500 rising 0.5 percent as investors balanced political uncertainty against a heavy slate of earnings and an upcoming Federal Reserve (Fed) decision.

The Global Strategy Team at TD Securities provides an overview of the recent market dynamics affecting the USD. The report highlights a calm day for Treasuries, with rates finding support, and notes the upcoming FOMC meeting where the Fed is expected to remain on hold.

MUFG Bank Senior Currency Analyst Lloyd Chan, highlights the current downward pressure on the US Dollar Index (DXY), which has fallen below the 98.00 level.

The US Dollar (USD) starts the Federal Reserve’s (Fed) monetary policy week on a negative note. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.4% lower to near 97.00 during the Asian trading session.

The US Dollar (USD) ended the week near a five-week low of around 97.80, maintaining a weak tone amid risk aversion in financial markets.

The US Dollar (USD) has regained some ground against major currencies after President Trump dropped his threats of tariffs and military action against NATO allies, reducing immediate downside risk, MUFG's FX analyst Lee Hardman reports.

The US Dollar (USD) has strengthened alongside risk assets after Trump scrapped EU tariffs following a Greenland framework deal, though markets await more details before fully shifting focus, ING's FX analyst Francesco Pesole notes.

The US Dollar Index (DXY) bounced on Tuesday, as US President Donald Trump softened his tone toward the European Union in his speech at the World Economic Forum in Davos.

Dow Jones futures rose 0.29% to around 49,400 in the European session on Thursday, while S&P 500 and Nasdaq 100 futures climbed 0.49% and 0.74% to near 6,950 and 25,650, respectively. US stock futures advanced as geopolitical and trade tensions between Washington and Europe eased.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is maintaining its position after registering modest gains in the previous session. The DXY is trading around 98.80 during the Asian hours on Thursday.

United States (US) President Donald Trump was once again the main market mover on Wednesday, saying they are seeking immediate talks with Europe on Greenland. He added Greenland would not be a threat to NATO if the territory were under US control.

US equities rebounded on Wednesday after President Trump ruled out using military force to acquire Greenland, easing a key source of market anxiety.

A Reuters poll published on Wednesday showed unanimous expectations that the Federal Reserve (Fed) will keep its policy rate unchanged at its January meeting.

United States (US) Commerce Secretary Howard Lutnick said during European trading hours on Wednesday that the trade deal between the European Union and Washington is long-lasting.

Markets steadied following yesterday’s shake-out. Japanese government bonds rebounded, dragging other sovereigns up, while the slide in stocks and the dollar paused.

The dollar sell-off reflected spillovers from Japanese bond volatility and renewed sensitivity to fiscal risks, though a rebound in long-dated JGBs has eased pressure. -With Trump meeting EU leaders in Davos and signalling willingness to compromise, geopolitical de-escalation could lend the dollar m

Dow Jones futures gain by 0.25% to near 48,800 during the European session on Wednesday, while S&P 500 and Nasdaq 100 futures rise 0.38% and 0.41% to near 6,860 and 25,200, respectively.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after experiencing volatility and trading around 98.60 during the early European hours on Wednesday.

US equities sold off sharply on Tuesday as geopolitical risk surged after President Donald Trump escalated rhetoric around acquiring Greenland, including new tariff threats against close US allies.

Global stocks and bonds are under pressure, but the standout move is a sharp sell-off in US assets, with the dollar extending losses triggered by Trump’s renewed tariff and Greenland threats ahead of Davos.

The US Dollar (USD) has softened as investors anticipate that tariffs tied to President Trump’s Greenland plans may be delayed or cancelled, easing immediate trade tensions.

Dow Jones futures fall by 1.25% to near 48,900 during the European session on Tuesday, while S&P 500 and Nasdaq 100 futures decline 1.34% and 1.56% to below 6,900 and 25,300, respectively.