Forex Analysis & Reviews: 26.06.2025 - Investors Recall the Chronic...

Live Chat

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

26.06.2025 09:19 AM

Investors Recall the Chronic Weakness of the Dollar (Further Decline in #USDX and USD/JPY Possible)

The markets continue to be dominated by the theme of Iran-Israel negotiations, previously initiated by the United States. Whether actual agreements are reached or not will have a noticeable impact on asset prices—beyond just oil prices. However, this issue is not the only one weighing on investors.

Iran and Israel's negotiators are scheduled to meet next week. The suspension of active military conflict is not a final solution, meaning that a breakdown in talks would inevitably lead to a resumption of hostilities. It is unlikely that the parties are doing nothing to prepare for a potential failure of the negotiation process.

While the issue of escalation in the Middle East has temporarily faded into the background, investors have once again turned their full attention to another unresolved issue brought forth by Donald Trump—customs tariffs. This problem hasn't gone away, and with the 90-day deadlines concerning China, the EU, and other countries approaching, it is returning to the forefront. This shift is reflected in the movement of the dollar exchange rate and gold prices, the latter of which traditionally serves as a safe-haven asset in times of instability.

After a brief period of stabilization in the dollar's exchange rate against a basket of major currencies—and even a modest recovery—the easing of Middle East tensions has redirected investor attention back to the underlying weakness of the U.S. currency. As a result, the dollar index has fallen below the strong support level of 97.75 and is moving toward a new support level of 96.65. The key drivers of this weakness remain the same: elevated risks of continued GDP contraction, which has once again turned negative for the first time since 2022. One must also factor in the uncertainty surrounding the economic impact of the trade war initiated by Trump shortly after taking office. This trade issue is central to the dollar's underlying weakness.

If today's revised U.S. Q1 GDP figures align with expectations—projected at -0.2% versus +2.4% in the previous period—pressure on the dollar will likely intensify in the Forex market, pushing major currencies traded against the dollar higher.

What Can Be Expected in the Markets Today?

Due to the suspension of hostilities in the Middle East, demand for equities is likely to persist. However, the continued presence of this issue as a high-risk factor will exert pressure on the markets, particularly on the dollar and oil prices. Tokens and gold will likely receive support.

Forecast of the Day:

#USDX

The dollar index will likely continue to decline amid the general fundamental weakness of the U.S. currency. In this environment, a drop to 96.65 is expected. The 97.30 level may serve as an entry point for selling.

USD/JPY

The pair has fallen below the support level of 144.50. Dollar weakness will likely contribute to further declines in line with the overall sideways trend. The 144.30 level may serve as a point to enter short positions.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.