US Dollar (DXY) tests key resistance near 99.50 as Middle East energy disruptions and Strait of Hormuz risks lift inflation expectations.

EUR/USD extends its losses for the third successive session, trading around 1.1600 during the European hours on Wednesday. The pair holds losses following the release of February’s HCOB Purchasing Managers’ Index (PMI) data from Germany and the Eurozone.

Oil prices jumped to their highest since June in Asia trading on Monday following US and Israeli strikes on Iran, while the US Dollar Index (DXY) made an outsized gain, as markets opened for the first time since US and Israeli airstrikes killed Ayatollah Ali Khamenei, and as Iran’s retaliatory measures hit targets across the region including Dubai and Cyprus.

The dollar index was little changed below 99 on Wednesday, after surging 1.5% over the previous two sessions, as traders paused to assess developments surrounding the conflict with Iran and a slight easing in the rally in energy prices.Although tensions have not de-escalated, US President Trump sai…

The price of EURUSD rose in its last intraday trading, supported by the emergence of the positive signals from relative strength indicators, in attempt to correct the main bearish trend on short-term basis, amid the continuation of the negative pressure due to its trading below EMA50, reinforcing the stability and dominance of the main bearihs trend, and the relative strength indicators reached exaggerated overbought levels, indicating a quick fading for the bullish momentum.

US data and Beige Book could curb 2026 Fed easing hopes, supporting dollar; DXY capped near 100.35.

Rabobank’s Senior FX Strategist Jane Foley discusses USD/JPY backing off highs near 158 as profit taking and hawkish comments from BoJ Governor Ueda support the Japanese Yen. The bank highlights Japan’s vulnerability to higher energy prices but stresses the Yen’s safe haven role.

The EUR/USD pair finally found a near-term bottom, currently trading at around 1.1640 after falling to 1.1530 on Tuesday. The market mood remains wary as the Middle East crisis intensifies, albeit crude oil prices seem to have stabilized, bringing a bit of fresh air.

NZD/USD rebounds on Wednesday, gaining 0.45% to trade around 0.5920 at the time of writing, as the US Dollar (USD) weakens after two days of solid gains.

The technical picture suggests a bullish break of a price channel and key horizontal resistance will occur if the price gets established above $1.3372.