DXY Mixed as Oil and Yields Soar While Equities and Bitcoin Tumble

Risk assets faced heavy selling pressure as President Trump's attempts to stabilize markets through verbal intervention proved ineffective. US equity futures tumbled alongside Bitcoin, while crude oil and Treasury yields soared amid the ongoing Middle East conflict and its inflationary implications. The divergence between rising yields and falling risk assets highlights a stagflationary environment where inflation fears coexist with growth concerns. The US Dollar Index showed mixed performance — strengthening against risk-sensitive currencies but facing headwinds against traditional safe havens like the Swiss franc and Japanese yen. Bitcoin's decline underscored a broader de-risking move, as crypto markets mirrored equity weakness rather than acting as a haven alternative. The surge in oil prices and yields has repriced Fed funds futures, with markets now assigning lower probability to near-term rate cuts. Key technical levels to watch include the DXY 105.00 resistance and 103.50 support zone. Traders should prepare for continued two-way volatility as conflicting forces — haven demand for USD versus inflation-driven yield concerns — create an unpredictable trading environment across major forex pairs.