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ForexMediumUpdated•Originally published 1 October 2026•Updated 1 October 2026•
1 min read

Dollar Strength Pressures Euro as DXY Index Nears Yearly Highs

Key Facts

1The DXY dollar index is approaching yearly highs, supported by encouraging US activity data.
2August US PCE inflation data was softer than expected but failed to significantly alter Fed tightening expectations.
3EUR/USD is testing its year-to-date lows and remains vulnerable to further downside.

The DXY dollar index is approaching its yearly highs, supported by encouraging US economic activity data. ING reported that while August PCE inflation data was softer than expected, it failed to significantly alter expectations for Federal Reserve tightening, maintaining upward momentum for the greenback.

The EUR/USD pair is testing its year-to-date lows and remains vulnerable to further downside as dollar demand persists. According to ING, robust US activity is offsetting the impact of cooling inflation, keeping the market focus on the Fed under Chair Kevin Warsh, while the Euro faces technical pressure as it probes yearly support levels on October 1, 2026.

Latest Updates · 1

  1. Notable·

    Update: The DXY dollar index reached 101.777 during early European trading on October 1, 2026. This level marks a three-month high for the index, reinforcing the greenback's upward momentum against major currencies.