Today’s BoJ rate hike is a step towards normalization, consistent with a less oversold Japanese Yen (JPY). The Dollar Index (DXY) seeing its biggest two-week decline since August, is consistent with the recent phase of dollar strength losing momentum. But range trading is more likely than a significant downtrend, for now, notes Societe Generale FX expert Kit Juckes.
USD rises against GBP, falls against the rest
“The third full week of 2025 is ending and so far, the pound is the weakest of the G10 currencies while the Australian and New Zealand dollars are fighting for first place. USD up against the pound, down against the rest , and the DXY is set to fall for the second consecutive week for the first time since the last rally began in late September.”
“It’s the biggest two-week drop since August and before that, the biggest since 2023. Finally, this drop has also helped move the Dollar Index closer to where relative rates might suggest it should be – the ‘fair value’. ‘ current on that base is around 104.5.”
“The DXY and EUR/USD are pretty much stuck in ranges, which I will define as 99 to 110 for the DXY, consistent with the EUR/USD in a range of 1-1.12, until something changes dramatically. In fact, a lot has to do with it.” change before we return to EUR/USD 1.10. This morning’s marginally better PMIs were welcome, but do not count as a game changer.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
