📊 $USD1 Market Snapshot — January 13, 2026

1. Dollar softens on political & macro uncertainty

• A criminal investigation into Federal Reserve Chair Jerome Powell has rattled markets, raising fears over Fed independence and future rate direction. This has weakened the USD modestly as traders price in greater uncertainty and potential dovish policy risk. �

The Guardian

2. Mixed forex reaction globally

• The Japanese yen weakened sharply to multi-year lows against the dollar, partly due to expectations of looser policy in Japan, which in turn helped support the USD in some crosses. �

• But overall sentiment is mixed, with the dollar not showing broad strength across all pairs.

Reuters

3. Technical & market positioning context

• Recent price action suggests the USD Index (DXY) is holding near mid-90s to ~99 levels rather than rallying strongly — a sign of consolidation rather than clear trend. �

• Earlier data shows the DXY has traded around the high-90s, holding below key resistance near ~100. �

ACY Securities

FXEmpire

4. Broader weak dollar trend still visible

• In 2025 the dollar experienced notable weakness against many major currencies — with the DXY falling from peaks above 107 to mid/high-90s — driven by macro shifts and expectations of Fed easing. �

LEAP INSIGHTS FOUNDATION

🔎 What this means now

Short term: The USD is vulnerable to further softening if political uncertainty deepens and Fed policy expectations shift dovish.

Technical: Consolidation around the current range; breaking above resistance near ~99.8–100 could negate some bearish technicals.

Macro: Continued risk to Fed independence and inflation/earnings data will be key drivers.#usd #USD#USTradeDeficitShrink #USDemocraticPartyBlueVault