The US Dollar Index (DXY) is currently trading at approximately 98.30, retreating from a recent one-week high recorded on Friday. This decline is attributed to prevailing expectations of a dovish monetary policy stance from the Federal Reserve that could extend into 2026. As traders anticipate a softer approach from the Fed, the USD’s appeal wanes, impacting various currency pairs.
In contrast, gold has emerged as a bright spot in the market, benefiting from the dollar's weakness. With the DXY's slip, gold prices are likely to attract increased buying interest as investors seek safe-haven assets amid economic uncertainties. The market will closely monitor upcoming US economic data, which could further influence the USD's trajectory and the trading dynamics of major currency pairs like EUR/USD and USD/JPY.
About FX Killer Trader Incubation Program
Want to become a professional trader? FX Killer offers a completely free professional trader training program. We provide systematic courses, practical training, and professional mentorship to help you grow from beginner to full-time trader.
👉 Join Free Training Program | Trading Psychology Assessment
Data Source: FX Killer Analysis Team Updated: 2025-12-22 19:17
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.