DXY Strengthens on Hawkish Fed Hangover; EUR/USD and Oil Under Pressure

The US Dollar Index is extending gains on Thursday as markets digest the aftermath of a hawkish Federal Reserve stance, creating what analysts describe as a 'hawkish hangover' across global FX markets. EUR/USD is trading under pressure as the dollar's renewed strength weighs on the single currency, while EUR/GBP cross dynamics are also in focus. Brent crude oil futures are feeling the impact of dollar strength, adding a commodity dimension to the risk backdrop. The Fed's recent messaging has recalibrated rate expectations, pushing back the timeline for easing and bolstering the greenback against a basket of major currencies. The DXY has found firm support from rising Treasury yields, with the 10-year climbing above 4.40% this week. Near-term resistance for the dollar index sits at recent weekly highs, while EUR/USD support levels are being tested. Traders should watch for any shifts in Fed rhetoric or incoming US economic data that could either reinforce or challenge the current hawkish narrative driving USD demand.