The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, has fully recovered its disappointing performance in the Asian trading session on Monday. The previous decline in the US Dollar occurred due to the euphoria in the Euro (EUR) after the first German election results showed a strong lead for the Christian Democratic Union of Germany (CDU), which will lead in forming a coalition. When the atmosphere is calm, it means that fundamentally, there is no major change in Germany regarding the leadership and political agenda, which prompted the Euro to trim its gains and the DXY turned flat to positive.
Meanwhile, headlines from the US have emerged where several US departments such as the Pentagon have asked employees not to proceed with requests from Elon Musk and DOGE (Department of Government Efficiency) to reveal their duties. Elon Musk meanwhile issued a warning on Twitter that those who fail to comply to come to the office or report back to DOGE, will be placed on leave.
The ongoing G7 meeting has failed to agree on a joint statement to mark three years since Russia invaded Ukraine, amid disagreements between the US and its European allies. The US opposes language condemning Moscow and calls for more energy sanctions, and has threatened to withdraw support for the statement altogether, though discussions are ongoing.