DXY Resilient Despite FX Intervention Fears From Washington

The US Dollar Index (DXY) has held firm despite growing market speculation about Washington's increased vigilance over foreign exchange markets. While the White House has signaled heightened attention to currency dynamics, the dollar has demonstrated resilience, supported by relatively strong US economic fundamentals and interest rate differentials that continue to favor the greenback. EUR/USD and USD/JPY remain the primary pairs in focus as traders assess whether political rhetoric will translate into concrete policy action. The divergence between verbal warnings and actual dollar strength suggests the market is treating Washington's FX signals as jawboning rather than a precursor to coordinated intervention. For EUR/USD, the pair remains range-bound as traders weigh US political risk against European economic headwinds. USD/JPY continues to reflect the tension between US yield advantage and Japanese authorities' own intervention concerns. Near-term, the dollar's direction will likely hinge on whether Washington escalates beyond rhetoric, with traders advised to monitor official statements closely for any shift toward actionable FX policy measures.