The United States Dollar Index (DXY) trims earlier losses on Tuesday as traders swing between optimism and caution over a potential US-Iran deal.

The Dow Jones Industrial Average (DJIA) spent Tuesday proving that a one-day bounce is not the same as a bottom.

MUFG’s Lee Hardman notes that the US Dollar has stalled after the Dollar Index met resistance near 100.00 as Middle East tensions between Iran and Israel eased and Oil prices retreated toward USD90.

The US Dollar (USD) underperforms its major currency peers during the European trading session on Tuesday, as renewed hopes of a permanent peace deal between the United States (US) and Iran have diminished its safe-haven demand.

OCBC’s FX Strategist Sim Moh Siong notes that the Dollar is consolidating after payroll-driven gains, with Asia FX diverging on policy signals and flows. The bank has removed its final Fed rate cut and now expects no easing through 2026, alongside higher 10Y yield forecasts.

Dow Jones futures inch lower 0.02%, trading above 50,850 during the European hours on Tuesday, ahead of the US regular opening. However, S&P 500 futures gain 0.21% to near 7,430 and Nasdaq 100 futures rise 0.51%, trading near 29,600 at the time of writing.

The US Dollar (USD) faces slight selling in the European trading session on Tuesday due to renewed hopes of a potential deal between the United States (US) and Iran.

ING’s Chris Turner notes that risk assets and Asian currencies have stabilised, but expects the US Dollar (USD) to stay supported on dips as markets await key US data and central bank meetings.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining subdued for the second successive day and trading around 100.00 during the Asian hours on Tuesday.

The US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, edges lower on Monday as traders assess the evolving situation in the Middle East.

The Dow Jones Industrial Average (DJIA) sat almost unchanged into the European afternoon, futures drifting around the 50,750 area after an overnight session that climbed off a low close to 50,500 up toward the 51,000 line before rolling straight over.

BNY’s Bob Savage notes that escalating Middle East tensions and higher U.S. Treasury yields are driving risk-off flows, with the Dollar supported at two‑month highs.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar (USD) remains firm as United States (US) jobs data, higher Federal Reserve (Fed) rate expectations and rising Oil prices pressure stocks and bonds.

ING’s Chris Turner sees the US Dollar (USD) underpinned by hawkish Federal Reserve repricing and a risk-off tone in equities ahead of key United States (US) Consumer Price Index (CPI) and Producer Price Index (PPI) data.

Societe Generale’s Kit Juckes notes that recent US labour data have broken the prior FX range, challenging expectations for a weaker Dollar under President Trump.

HSBC’s FX Viewpoint highlights that the US Dollar sits at a crossroads, driven by Middle East tensions, US trade policy shifts and the upcoming June Federal Open Market Committee (FOMC) under new Fed Chair Kevin Warsh.

Rabobank strategists Molly Schwartz and Jane Foley highlight that USD net long futures positioning has more than quadrupled, reflecting resilient support for the Dollar.

Dow Jones futures decline 0.33% to near 50,750 during the European hours on Monday, ahead of the US regular opening. However, S&P 500 futures gain 0.10% to near 7,410 and Nasdaq 100 futures rise 0.35%, trading near 29,130 at the time of writing.

DBS Group Research’s Philip Wee argues that strong US nonfarm payrolls and a projected jump in May CPI to 4.2% YoY should keep the Dollar supported into the June FOMC.

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 100.10 during the Asian trading hours on Monday.

The market walked into Friday's payrolls report braced for weakness, and the US Dollar Index (DXY) made it pay. Consensus looked for a soft 85K of new jobs in May, the kind of number that fits a cooling labor market and a Federal Reserve (Fed) edging toward cuts.

There is an old reflex in equity markets that never quite dies: when the economy looks too strong, stocks get nervous. Friday brought it straight back.

Deutsche Bank strategists note that easing inflation fears and softer US data have led markets to scale back expectations for additional Federal Reserve tightening in 2026. The Dollar Index (DXY) is slightly lower, with jobless claims at a three‑month high and Treasury yields falling.

MUFG’s Derek Halpenny notes the US Dollar (USD) is trading near the top of its recent range as markets await key United States (US) labour data, with EUR/USD seen vulnerable to a stronger Nonfarm Payrolls (NFP) report.

ING’s Francesco Pesole highlights that limited upside volatility in Oil, despite stalled US-Iran talks, is capping further Dollar gains even as the macro backdrop improves and Fed expectations turn more hawkish.

The US Dollar (USD) trades lower against its major currency peers during the European trading session on Friday.

Deutsche Bank analysts describe a mixed backdrop for US equities, with the S&P 500 rebounding on broad participation even as chipmakers lag after Broadcom’s disappointing AI guidance.

Dow Jones futures inch lower 0.04% to near 51,650, while S&P 500 futures fall 0.64% to near 7,550. And Nasdaq 100 futures plunge 1.23%, trading near 30,110 during the European hours on Friday, ahead of the US regular opening.

Commerzbank’s Michael Pfister argues that a stronger United States (US) labour market only matters for the US Dollar (USD) if it shifts rate-hike expectations.

The US Dollar (USD) struggles for a direction as investors await the United States (US) Nonfarm Payrolls (NFP) data for May, which will be published at 12:30 GMT.