DXY Falls to 2025 Lows Amid Weak US Housing Data, Trump’s Fed Comments

DXY Falls to 2025 Lows Amid Weak US Housing Data, Trump’s Fed Comments

The US Dollar Index (DXY) continues its bearish trend, hitting a fresh 2025 low at 97.20 in early Thursday trading. The latest drop follows a mix of softer-than-expected US housing data and fresh political tension surrounding the Federal Reserve’s independence.

Housing Weakness Adds to Dollar Pressure

New housing figures from the US revealed a decline in activity, underscoring a cooling real estate sector that may weigh on broader economic performance. This comes at a time when markets are already pricing in a higher chance of rate cuts before the end of the year.

Trump Eyes Early Fed Shake-Up

Adding fuel to the fire, reports emerged late Wednesday that former President Donald Trump is considering naming a new Federal Reserve Chair as early as September or October, months ahead of Jerome Powell’s scheduled end of term. This move is seen by markets as a threat to central bank autonomy, a factor that historically undermines confidence in the US Dollar.

🗣️ Analysts note: “Any sign of political interference in Fed leadership increases volatility and weakens the USD’s credibility on the global stage.”

Technical Outlook: Will DXY Hold 97.00?

With the DXY now hovering around 97.20, traders are eyeing the key support at 97.00, a psychological level last tested in March 2022. A break below may open the path to 96.50, while resistance is now seen at 97.80.

Read More on Tredu:

• What’s Behind the US Dollar Decline?
• Fed Independence and Market Confidence: A Historical Perspective
• US Housing Slowdown: Economic Warning Signs