USD Index Faces Another Volatile Week Amid Policy Uncertainty

The US Dollar Index is set for another turbulent week as persistent policy uncertainty and shifting macro dynamics weigh on the greenback. Following recent bumpy price action, the dollar remains under pressure against the euro and the British pound, with EUR/USD and EUR/GBP cross dynamics adding complexity to positioning. The DXY has struggled to establish a clear trend, reflecting conflicting signals from economic data and evolving trade policy. Market participants are grappling with the fallout from the Supreme Court tariff decision, which has reduced the perceived policy premium embedded in the dollar. The euro has been a primary beneficiary, with EUR/USD pushing higher as sentiment shifts. Technical analysis shows the DXY oscillating near key moving averages, with neither bulls nor bears able to establish firm control. Resistance for the dollar sits at recent weekly highs, while support levels are being tested with increasing frequency. Traders should exercise caution and employ tight risk management given the elevated two-way volatility expected throughout the week.