Makro

DBS Group Research’s Philip Wee argues that the USD Index (DXY) is at an inflection point, consolidating in a 98–99 range after retracing its post-Operation Epic Fury rally.

Commerzbank’s Antje Praefcke expects Norges Bank to keep rates at 4.0% but maintain a distinctly hawkish tone compared with the Riksbank. With Norwegian inflation above target, the bank projects one or two hikes by year-end and may act in June if Iran-related risks persist.

UOB analysts report that the US Dollar index DXY posted another small gain as markets digested a four-week ceasefire in the Middle East and reduced fears of a renewed US-Iran conflict.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 98.30 during the Asian trading hours on Wednesday. The DXY attracts some sellers due to easing tensions in the Middle East.

UOB economists Julia Goh and Loke Siew Ting highlight that Philippine inflation has surged to a 37‑month high, forcing a sharp upward revision to the 2026 forecast.

DBS Group Research economist Chua Han Teng expects the State Bank of Vietnam (SBV) to turn more hawkish as Vietnam’s inflation accelerates and stays above target.

The US Dollar Index (DXY) is trading with a neutral tone near the 98.50 area, supported by safe-haven demand and elevated US yields even after upbeat US data. Price action remains choppy amid shifting Middle East headlines.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Euro (EUR) is flat versus the US Dollar (USD), with EUR/USD stuck in a range as markets weigh conflict-related inflation risks and a hawkish European Central Bank (ECB) stance.

Rabobank’s Senior FX Strategist Jane Foley notes the US Dollar Index (DXY) is trading near key moving averages, with markets reluctant to extend USD longs despite renewed Middle East tensions.

Rabobank’s Senior FX Strategist Jane Foley expects interest rate differentials to support an upward bias in EUR/USD in the second half of the year, but sees Euro gains capped by Eurozone growth headwinds from the current supply shock.

AUD/USD trades around 0.7170 on Tuesday, remaining slightly on the back foot for a second consecutive day despite the monetary policy decision from the Reserve Bank of Australia (RBA).

TD Securities strategists Prashant Newnaha and Alex Loo highlight that the Reserve Bank of Australia (RBA) raised the cash rate to 4.35% with a dovish message, viewing risks to inflation and growth as more balanced.