[MARKET ANALYSIS] DXY under pressure to start the week following renewed worries of Fed independence

• DXY has started the week on the backfoot, falling from a high of 99.25 to a trough of 98.85, as federal prosecutors open a criminal investigation into Fed Chair Powell over recent renovations of its headquarters. This puts further pressure on Fed independence as this has been put as a sign of the Trump administration trying to force Chair Powell out, despite President Trump denying any involvement.
• EUR/USD and GBP/USD have started the week positively, currently +0.2%, as a function of the dollar weakness seen across markets. This rebound follows the weakness seen throughout trade last week.
• USD/JPY has trades undecided throughout the APAC session, briefing extending beyond 158.00 and into touted intervention territory, before selling off to a trough of 157.52 amid global risk-off flows at the time. The pair has pared back the majority of its losses, now trading unchanged intraday at 157.96.
• Antipodeans have benefited the most from the bid in the metals space, with NZD/USD +0.3%, while AUD/USD is only slightly higher +0.2%.

The DXY is facing downward pressure primarily due to concerns over the Federal Reserve's independence following a criminal investigation into Fed Chair Powell. This could signal shifts in market confidence regarding U.S. monetary policy, as a weakened Fed could lead to greater volatility across currencies and increased scrutiny on rate decisions and overall economic outlook.