Analysis points out that the DXY is in a delicate intermediate state at the 100 mark, with insufficient downward momentum in the short term or limited rebound.

Wall Street Insights analysis points out that after the Japanese Yen intervention shakeout, the DXY has returned to the 100 mark. Currently, based on FX option positions, the US-non-US interest rate differential, and the market pricing in a 64% chance of a Federal Reserve rate hike in September, the US dollar exchange rate is at a neutral level, a delicate middle ground. Although analysts are not optimistic about a stronger dollar in the second half of the year, they believe that the DXY lacks downward momentum in the short term and may even see a limited rebound. This is primarily due to the resilience shown in US economic data for July (such as the ISM Manufacturing PMI hitting a nearly four-year high and low jobless claims), as well as the Federal Reserve's incentive to release hawkish messages at the Jackson Hole annual meeting in late August to maintain credibility.