For now, the American dollar can avoid another daily loss with Geopolitics roaming markets

The American dollar has become after an earlier wild ride as a flood of geopolitical messages, explodes on Monday.
In Germany, the far -right AFD party is overtaken by the CDU.
The American dollar index (DXY) recovered almost 0.50% of the loss and transactions D slightly higher at the time of writing.

The American dollar index (DXY), which follows the results of the American dollar (USD) compared to the six main currencies, completely regained Asian losses during the US trading session on Monday. The first transition to the American dollar occurred due to euphoria for the euro (EUR) after the first German election results showed a mighty role in the Christian democratic union of Germany (CDU), which would include the lead in the creation of a coalition. When the dust settles, it means that there will be no major changes in Germany in Germany regarding leadership and the political program, which make the euro to profit and DXY are changing flat.

Meanwhile, US headers were added, in which several US departments, such as Pentagon, asked employees not to continue the request of Elon Musk and Doge (Department of Government) to disclose their duties. Meanwhile, Elon Musk issued warnings on Twitter that those who do not follow the office or reporting to the dog will stay on vacation.

During the ongoing G7 meeting, the group is not able to agree on a joint statement on the occasion of three years since the attack of Russia of Ukraine, because of disputes between the USA and its European allies. The United States opposed the language by condemning Moscow and a call to more energy sanctions and threatened that they had completely supported the statement, although discussions are underway.

The economic calendar in the US begins slowly, with all eyes to the American domestic product (GDP) in the fourth quarter of 2024 on Thursday and expenses for personal consumption (PCE) for January on Friday. However, the national index of activities in Chicago Fed for January is expected to seem on Monday. Later on the same day, the President of the United States (USA) Donald Trump is also to give a speech.

Daily Digest Market Movers: Not impressed

EUR (EUR) gave up all its profits in relation to the American dollar (USD), because traders are not impressed by the possible lack of earnest reforms or changes in the German political landscape for the modern government formation.
The national activity indicator in Chicago Fed for January was -0.03, which is a petite loss compared to the previous reading 0.15.
The US treasure for auction of 3-month, 6-month bills and 2-year notes auction on Monday.
US President Donald Trump is to organize a press conference with President France Macron near 19:00 GMT.
The actions have relief after the German election result, although German Dax disappear from its profits in the end -held scope at the beginning of the American trade session. The wider Stoxx 50 Stoxx 50 indicator becomes even negative after the US bell opening.
The CME Fedwatch tool shows 41.2% of the chance that interest rates will remain unchanged at current levels in June compared to a larger 46.2% for a reduction in the rate of 25 base points (BPS).
10-year income in the US trads around 4.43%, which is over 3%compared to the highest last week by 4.574%.

American dollars index Technical analysis: she is obliged to move

The American dollar index (DXY) presents here the element of the textbook, with the German election result as a catalyst. During the Asian session, the sigh with relief and support for the euro was overtaking the green in the idea that the crisis was reversed, and there is no sufficient number of places to secure the lead in Germany. However, now, when dust falls, markets are beginning to realize that the current probability of the coalition is uninteresting, and the same political markets have seen in the last few decades, which is seen as insufficient to launch a significant additional growth in euros.

On the other hand, a 100-day straight moving average (SMA) can limit bulls buying a green place near 106.61. From there, the next stage may boost to 107.35, key support from December 2024 and January 2025. In the event that US President Trump has several unexpected comments on Monday, even 107.96 (55-day SMA).

On the other hand, the level 106.52 (April 16, 2024, high) has seen a false break for now. However, this means that a lot of stops could be launched in the markets, and several bulls were washed from their long positions of the American dollar. Another lower legs may be needed to encourage these dollar bulls to re -introduce at lower levels, nearly 105.89 or even 105.33.

American dollar index: daily chart