There has been some violent moves around markets since yesterday’s North-American session close.
Between the misstep in Nvidia’s earnings release and renewed political tensions in the U.S, markets had plenty of fuel for volatility across the board.
The USD gapped up on the news that the US Federal Court blocked the Trump’s sweeping tariff policy – though volatility induces more volatility and the dollar is now the weakest currency on the day.
Trying to make sense of these moves – USD Chart
DXY 1H Chart, May 29, 2025. Source: TradingView
The Dollar has had some wild swings to pursue the year’s theme. The US Federal Court decision greatly appreciated the USD, supplemented with a beat in Nvidia Earnings.
US Index Futures rallied massively, and other major currencies initially took a beating. A broader theme of lack of confidence in the US led to some profit (or loss) booking of positions and the market selling this news.
As observed on the charts, the markets rejected last week’s highs situated around the 100.50 level and quickly retested the 100.00 key level.
A market that has been downtrending may retest prices as a trend reverses, and this would have been a healthy gap close if the market did not reverse much further.
The DXY opened up 0.66% and is now down -0.44%.
The rejection got exacerbated by US Weekly Jobless Claims that came in weaker than expected (240K actual vs 230K exp) and other currencies are now enjoying from a break off USD Strength, with the Euro leading the charge.
Next support is at 99.20 to 99.30, about 100 pips away.
A return towards the MA 200 would eye at 99.70 and further reversal of the move down would hint at another retest of the 100.00 level.
DXY is trading around 99.45 right now and markets showed a indecision doji at the last hour.
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