DOLLAR INDEX 3HR CHART US Dollar IndexCAPITALCOM:DXYShavyfxhubDOLLAR index from TVC broker already attained 100.354 before correction and i see the buying pace to return into 100$ and above despite rate cut .the close of the newyork session came back to my demand floor and reacted on long position based on the rule of break and retest. FUNDAMENTAL OF DOLLAR INDEX . The U.S. Dollar Index (USDX or DXY) is a measure of the value of the U.S. dollar relative to a basket of six major foreign currencies: the euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF). It was created by the U.S. Federal Reserve in 1973 shortly after the Bretton Woods Agreement dissolved. The index is maintained and published by the Intercontinental Exchange (ICE). How the Dollar Index Works The index is a weighted geometric mean of the dollar’s value relative to the six currencies, with the euro having the largest weight (57.6%). A rise in the index indicates dollar strengthening against these currencies, while a decline indicates dollar weakness. Impact on Gold Price Gold is priced in U.S. dollars globally, so its price has an inverse relationship with the dollar index. When the dollar strengthens (index rises), gold becomes more expensive in other currencies, reducing demand and often causing gold prices to fall. Conversely, when the dollar weakens (index falls), gold becomes cheaper internationally, increasing demand and driving prices up. Additionally, gold is viewed as a safe-haven asset, so macroeconomic factors influencing the dollar also indirectly affect gold's price dynamics. The relationship between the U.S. Dollar Index (DXY) and the U.S. 10-year Treasury yield (US10Y) is closely interconnected, reflecting how currency strength and bond yields interact in financial markets. Key Points of Dollar Index and US10Y Relationship: Positive Correlation: Generally, the Dollar Index and the US 10-year Treasury yield move together. When the 10-year yield rises, it often signals expectations of stronger U.S. economic growth and potential inflation, which tends to boost demand for the U.S. dollar, pushing the Dollar Index higher. Yield Attraction: Higher U.S. Treasury yields make U.S. assets more attractive to global investors, increasing the demand for dollars to buy Treasury securities. This capital inflow strengthens the dollar against other currencies, reflected in a rising Dollar Index. Monetary Policy Expectations: The 10-year yield is influenced by Federal Reserve monetary policy and market expectations. When the Fed signals tightening (rate hikes), yields rise, supporting dollar strength. Conversely, easing tends to lower yields and weigh on the dollar. Safe-Haven Dynamics: During economic uncertainty or risk-off events, both U.S. Treasuries and the dollar may see increased demand. This can sometimes cause a decoupling if yields fall (due to bond buying) while the dollar strengthens as a safe haven. Reasons for Dollar Index Rising Despite Rate Cuts: Safe-Haven Demand: Even with rate cuts, in times of global uncertainty or geopolitical tensions, the U.S. dollar remains a preferred safe-haven currency. Investors flock to the dollar for safety, pushing the index higher. Relative Central Bank Policies: The dollar’s strength is relative. If other major central banks (ECB, BOJ, BOE,RBA,RBNZ,BOC ) maintain lower rates or ease monetary policy more aggressively, the dollar can strengthen even if the Fed cuts rates. Market Expectations and Rate Cut Timing: Rate cuts may have been widely anticipated and priced in ahead of time. The dollar may have declined earlier, and once the cut occurs without negative surprises, it can stabilize or rebound. Economic Outlook and Inflation: If the rate cut is seen as precautionary with a still strong U.S. economy or persistent inflation, dollar strength may persist since the Fed is not signaling prolonged easing. Yield Curve and Bond Flows: Even with short-term cuts, longer-dated Treasury yields may remain elevated due to inflation or growth expectations, attracting foreign capital and supporting the dollar. Technical and Positioning Factors: Trading dynamics, market positioning, and technical support levels can sustain or boost the dollar temporarily irrespective of fundamentals ,such as the break and retest of the daily supply roof and traders took long position on the retest of a broken supply as a new demand floor to close the week touching 100.354 before correction #US10Y #DXY #dollar