Chart of the day - USDIDX (29.07.2025)

The U.S. dollar is experiencing its second strong bullish session in a row. The USD Index (USDIDX) is up 0.20% today, reaching 98.560 points, once again making it the strongest G10 currency. EURUSD is down 0.20%.

Yesterday’s 1.10% gain was primarily driven by the announcement of a preliminary trade agreement between the U.S. and the EU. The deal removed short-term tariff uncertainty and boosted risk appetite, particularly for U.S. assets, supporting broad dollar strength. The EU agreed to a 15% tariff rate on key exports such as cars and pharmaceuticals, and committed to purchasing $750 billion worth of U.S. energy and investing $600 billion in American industry. The agreement favors the U.S. economy, while European leaders have faced harsh criticism at home—accused of striking a deal that is economically damaging and politically submissive. Limited room for further monetary easing in the eurozone and the ECB's recent pause further reduce the euro's potential for recovery.

Today, markets are focused on upcoming U.S. macroeconomic data and the Fed’s decision. While yesterday’s optimism strengthened the dollar, investors are now awaiting Wednesday’s Fed rate decision, the ADP private employment report, and Friday’s NFP data. These releases will be key to shaping expectations about possible rate cuts later in 2025—especially amid growing tensions between U.S. President Donald Trump and Fed Chair Jerome Powell.

From a technical perspective, the USDIDX is rebounding from a key support level. The main zone that bulls now need to break through is the resistance line above 98.700 points.