The U.S. dollar index edged higher with modest support, closing at 99.06, up 0.20%, ending its nine-day losing streak. However, it remains near a five-week low as markets brace for a potential Fed rate cut next week. Meanwhile, the yen strengthened to a near two-and-a-half-week high amid growing expectations of a Bank of Japan rate hike this month.

European Central Bank (ECB) Executive Board member Piero Cipollone noted that consumer prices in Europe are not a major concern for the ECB, with the economy performing well. ECB President Christine Lagarde stated that eurozone inflation may temporarily hover near the central bank’s target, though tariff-related uncertainties cloud the outlook.

Markets are pricing in a nearly 90% chance of a 25-basis-point Fed rate cut next week. Despite strong U.S. jobless claims data last week, expectations for monetary easing remain firm.

Analysts caution that while bearish sentiment toward the dollar is strong, aggressive bets on further weakness may be premature, as the current trend may not extend into early next year.

**Technical Analysis** **U.S. Dollar Index** After peaking at 110.18, the dollar index has been under sustained downward pressure. Currently trading below the MA250, it remains in a clear downtrend, with short-term intraday bias favoring further downside.

**EUR/USD** The euro has rebounded from its previous low of 1.0177, now trading firmly above the MA250, signaling a bullish trend. Intraday momentum suggests continued upside.

**USD/CNH** The offshore yuan hit a high of 7.4287 on April 8 before retreating. Currently below the MA250, short-term bias leans toward further declines.

**USD/JPY** After peaking at 158.8763, the pair has weakened, touching a low of 139.8880 before a tepid rebound. Trading below the MA250, intraday momentum remains bearish.

*Disclaimer: Past performance is not indicative of future results. Investing carries risks.*