The DXY index has once again surpassed the support level at 103.00 after dropping due to recession expectations.

Some Fed officials (A. Goolsbee and M. Daly) have commented on the U.S. labor market, stating that investors are overly concerned and dismissing the possibility of the U.S. entering a recession. They suggest that lowering interest rates could avoid such a scenario.

However, in the long term, it is evident that the U.S. economy is performing better than the European economy. This trend indicates that the recent weakness of the U.S. dollar is only temporary.

Source: Fxstreet