CFDs are highly speculative, leveraged instruments. Trading in CFDs carries a high degree of risk to your capital. Investors should ensure they possess adequate market knowledge or seek independent financial advice before executing trades.

Back to Daily Market Update

Daily Market Update

DXY APPROACHES 101.80 AS RISING TREASURY YIELDS SUPPORT USD

DXY trades near an eight-week high as rising Treasury yields and expectations for tighter Fed policy support the US Dollar, with 101.80 as key resistance.

Daily Market Update September 25, 2026

DXY APPROACHES 101.80 AS RISING TREASURY YIELDS SUPPORT USD

DXY APPROACHES 101.80 AS RISING TREASURY YIELDS SUPPORT USD

The US Dollar continues to outperform major peers as rising US Treasury yields support expectations for a more restrictive Federal Reserve policy outlook. The US Dollar Index (DXY) is trading near its eight-week high around 101.30, while the 10-year US Treasury yield remains close to its recent multi-year high near 5.23%.

According to the CME FedWatch Tool cited in the source, markets are pricing around a 58% probability of additional Fed rate increases across the remaining policy meetings this year, keeping interest-rate expectations as a key driver for the Dollar.

Higher-for-longer rate expectations have supported Treasury yields, with markets responding to stronger economic conditions, elevated energy prices and expectations that the Federal Reserve may maintain tighter monetary policy for an extended period.

Fed officials continue to highlight inflation as an important factor, while recent comments pointed to resilience in the US economy and improved confidence in labor market conditions. These signals have reinforced market attention on the future path of interest rates.

From a technical perspective, DXY maintains a positive near-term bias while holding above the 20-day EMA near 100.11. The RSI (14) near 73 indicates strong momentum but also suggests the index may face a potential pause or consolidation after recent gains.

The next key resistance level is near the yearly high around 101.80. On the downside, the 20-day EMA near 100.11 remains an important technical support area for the broader recovery trend.

For market participants, the key factors remain Fed rate expectations, US Treasury yields, inflation trends,the US Dollar momentum and the 100.11–101.80 technical range, which may provide further direction for DXY in the near term.

⚠️ Risk warning: Trading forex and CFDs involves significant risk and may not be suitable for all investors. You may lose all of your invested capital. Please ensure you fully understand the risks before trading. Past performance is not indicative of future results.

Share this article

More from Daily Market Update

EUROZONE PMI FALLS TO 51.9 AS EUR/GBP HITS FRESH LOWS

Daily Market Update

EUROZONE PMI FALLS TO 51.9 AS EUR/GBP HITS FRESH LOWS

The Eurozone’s preliminary composite PMI fell to 51.9 in October from 53.1 in September, missing expectations of 52.7 as services and manufacturing activity slowed. Rising energy costs and concerns over France’s fiscal outlook added pressure on the Euro. Meanwhile, the UK composite PMI rose to 53.1, supporting Sterling and contributing to EUR/GBP reaching an 18-month low.

GOLD FALLS BELOW $4,000 FOR THE FIRST TIME SINCE JULY AS YIELDS AND USD WEIGH

Daily Market Update

GOLD FALLS BELOW $4,000 FOR THE FIRST TIME SINCE JULY AS YIELDS AND USD WEIGH

Gold falls below $4,000 per ounce for the first time since July as elevated US Treasury yields, a firm Dollar and expectations of further Fed tightening weigh on prices. Equity market sell-offs have also triggered bullion selling, while central bank demand and ETF inflows continue to support gold's longer-term outlook. Markets now focus on the Fed's October 28 decision for clues on the metal's next move.

SNB SAYS INCREASED WILLINGNESS TO INTERVENE NO LONGER NECESSARY

Daily Market Update

SNB SAYS INCREASED WILLINGNESS TO INTERVENE NO LONGER NECESSARY

The Swiss National Bank maintains its policy rate at 0% and says a higher willingness to intervene in foreign exchange markets is no longer necessary. The Swiss Franc depreciated around 3% on a trade-weighted basis between June and September, easing overall monetary conditions. With headline inflation at 0.8% and the 2026 GDP growth forecast upgraded to 1.5%–2.0%, the SNB expects price stability to remain intact over its forecast horizon.

FRENCH YIELDS TOP 5% FOR FIRST TIME SINCE 2002 AS MOODY’S REVIEW LOOMS

Daily Market Update

FRENCH YIELDS TOP 5% FOR FIRST TIME SINCE 2002 AS MOODY’S REVIEW LOOMS

EUR/USD trades just below 1.1250 as French 10-year government bond yields exceed 5% for the first time since 2002, adding pressure on the Euro ahead of Moody’s credit rating review. Markets are monitoring Eurozone and US PMI data, ECB and Fed rate expectations, and key technical levels, with resistance at 1.1250 and support at 1.1200, 1.1150 and 1.1100.

UK CPI HITS 3.5%: CORE AND SERVICE INFLATION ALSO ACCELERATE

Daily Market Update

UK CPI HITS 3.5%: CORE AND SERVICE INFLATION ALSO ACCELERATE

UK inflation accelerated to 3.5% in September, exceeding the 3.4% forecast. Core CPI rose to 2.8%, while services inflation increased to 3.7%, reinforcing expectations that the Bank of England may maintain a restrictive policy stance. Markets are monitoring persistent inflation pressures and the outlook for further rate tightening.

DXY GIVES BACK EARLY GAINS AS AI RISKS KEEP USD UNDER PRESSURE

Daily Market Update

DXY GIVES BACK EARLY GAINS AS AI RISKS KEEP USD UNDER PRESSURE

The US Dollar Index trades near 101.80 after retreating from an intraday high of 102.01, as concerns over the AI investment cycle weigh on the Dollar. Markets are monitoring French 10-year bond yields near 4.85%, Fed rate expectations and technical support at 101.65, with the RSI at 57 indicating that bullish momentum remains above neutral.

GBP/USD REBOUNDS FROM YTD LOW TO FRESH MONTHLY HIGH

Daily Market Update

GBP/USD REBOUNDS FROM YTD LOW TO FRESH MONTHLY HIGH

GBP/USD climbs to a fresh monthly high near 1.3325 after recovering from its 1.3135 year-to-date low. Weaker US Treasury yields, expectations for the Fed to hold rates and stronger UK GDP data support the pair. Traders are monitoring resistance at 1.3343, 1.3406 and 1.3468, with initial support near 1.3265.

WARSH WON’T PRE-JUDGE OCTOBER OR DECEMBER AS DXY SLIPS TO 101.82

Daily Market Update

WARSH WON’T PRE-JUDGE OCTOBER OR DECEMBER AS DXY SLIPS TO 101.82

The US Dollar Index slips to 101.82 as Fed Chair Kevin Warsh leaves the October and December policy decisions open. Markets will monitor inflation, employment, economic output and further Fed communication for clues on the US Dollar’s near-term direction.

How to enable swap-free — fast & transparent

Activation is simpleReach out, and our dedicated team handles the rest. No paperwork, no hidden steps just a seamless request.
How to activate swap-free?Contact our support team via Live Chat or Email. We will review your eligibility and activate swap-free status on your account once confirmed.