The US Dollar Index (DXY) has recorded its largest weekly drop in months.
Tensions between the United States and Europe are weakening dollar sentiment.
Concerns about the independence of the Federal Reserve are increasing pressure.
Investors are turning towards gold and cryptocurrencies.
The US Dollar Index (DXY) just recorded its largest weekly drop since April 2025, falling towards the 98.5 level. Charts show a clear breakout from its recent range, indicating a decline in the dollar's strength. Markets now reflect a decrease in confidence regarding international money flows.
Part of the decline is due to European sentiment $USD1
Part of the decline is attributed to anti-US sentiment in Europe. Shareholders have responded to increased trade tensions. Trump's threats regarding Greenland and tariffs have impacted diplomatic relations. Therefore, exposure to US assets is being reduced through European funds, directly affecting demand for the dollar and increasing selling pressure on the DXY index.
The investigation into Powell shakes confidence $USDE
The investigation by the Department of Justice into Jerome Powell is raising concerns, as it is viewed as political interference in the markets. Investors fear that the independence of the Federal Reserve may be affected, undermining confidence in US monetary policy. As a result, capital is seeking safer alternatives. Global investors are still reallocating their funds, with many reducing their dollar holdings and turning to gold, yen, and emerging markets, while others are shifting to cryptocurrencies. Such moves reduce liquidity in the dollar and reinforce the negative trend.
The rise in US debt weighs on financial structures $USDP
The US debt is approaching $38 trillion. Interest payments are expected to exceed $1 trillion this year. Investors are concerned about the long-term sustainability of the debt and challenge fiscal discipline. These issues are putting significant pressure on dollar expectations. Conversely, demand for metals and gold is increasing, and the weak dollar favors cryptocurrencies, which are seen as a hedge. A decline in the DXY index enhances risk appetite, creating a favorable environment for Bitcoin and other hard assets, indicating a general loss of confidence in the dominance of fiat currencies.
#BinanceSquareFamily #BinanceSquare #Binance #BinanceHerYerde #news