3 July 2025,06:00
Daily Market Analysis
3 July 2025, 06:00
Key Takeaways:
*The U.S. dollar staged a modest technical rebound but remains under pressure as fiscal concerns and political uncertainty persist.
*Investors fear that Trump’s proposed tax cuts could widen the U.S. deficit, undermine confidence in fiscal stability
*Heightened risk aversion and ongoing political risks are supporting gold prices, with further gains possible if market sentiment deteriorates.
Market Summary:
The U.S. dollar staged a technical rebound after slipping to a two-year low, with the Dollar Index (DXY) briefly recovering by more than 0.5% in the previous session to 96.37. However, the rebound lost steam in the latest session as market participants adopted a cautious stance ahead of the House of Representatives’ vote on the Senate-approved version of the Trump administration’s sweeping tax cut—dubbed the “Big and Beautiful” bill.
Investors are growing increasingly concerned that the proposed tax cuts, if passed, could exacerbate the already fragile state of U.S. fiscal health by slashing government revenue and driving up the national debt. Such a scenario risks undermining market confidence in Washington’s ability to meet its debt obligations, potentially putting further downward pressure on the greenback.
While the passage of the bill could trigger temporary volatility and dent risk appetite across financial markets, uncertainty over whether the legislation has enough support to pass in the House is already weighing on sentiment. The dollar, which is already under pressure from fiscal concerns and political uncertainty, may continue to trade with a soft bias should doubts over the U.S. government’s credibility persist.
Meanwhile, heightened risk aversion could bolster safe-haven demand, with gold poised to benefit as it hovers near record highs. Any further deterioration in market sentiment could see the precious metal gain additional ground.
Dollar_Index, H4:
The U.S. Dollar Index (DXY) attempted a rebound from its recent downtrend but failed to break back above its previous sideways range, highlighting the persistence of bearish momentum. The index has remained capped below its long-term descending resistance line since the start of the year, reinforcing the broader downside bias.
A break below the recent lows would likely confirm a fresh bearish signal for the index. Momentum indicators continue to reflect selling pressure, with the Relative Strength Index (RSI) holding below the midline and the MACD hovering near the bottom, both underscoring the dominance of the bearish trend.
Resistance Levels: 97.10, 98.30
Support Levels: 96.25, 95.75
Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.
This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.
This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.
PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
