The U.S. dollar index extended its decline on Monday, falling below the 98 mark as investor sentiment remained cautious. Market participants are on edge amid heightened uncertainty surrounding upcoming tariffs and political interference in monetary policy. With the August 1 deadline fast approaching, Commerce Secretary Lutnick emphasised it as a “hard deadline” for countries to begin paying tariffs, despite ongoing negotiations.
Tensions deepened after Treasury Secretary Bessent called for a reassessment of the Federal Reserve's role. Meanwhile, President Trump renewed his criticism of Fed Chair Powell for not cutting interest rates, fueling speculation about Powell’s possible dismissal and raising further concerns over the Fed's independence.
(U.S. Dollar Index Daily Chart, Source: Trading View)
From a technical analysis perspective, the U.S. dollar index has been in a bearish trend since January 2025, as reflected by a series of lower highs and lower lows. Recently, it was rejected from the swap zone between 98.40 and 98.70, pushing the index lower. This valid bearish continuation pattern may potentially lead to the formation of another lower low.
SAP SE is set to release its Q2 2025 results on July 22. Analysts expect earnings of $1.63 per share, up 38% from the prior year, and revenue of $10.4 billion, reflecting a 16.5% increase. The company’s cloud transition, driven by RISE with SAP and Grow with SAP, along with its AI-powered enterprise software strategy, likely played a key role in boosting performance.
SAP remains bullish on generative AI, expecting it to drive future growth. Management has integrated over 1,300 AI skills into its Joule co-pilot, aiming to cover 80% of business and analytics tasks by end-2024. However, long sales cycles, complex licensing, and shifting client budgets could weigh on revenue. Ongoing U.S.–China tensions also pose risks to software license sales.
(SAP SE Daily Share Price Chart, Source: Trading View)
From a technical analysis perspective, SAP’s share price has been moving in a bullish trend within an ascending channel, as indicated by higher highs and higher lows. Recently, the price has approached the upper boundary of the channel. If it is rejected at that level, a bullish correction may follow, potentially pushing the price down to retest the support zone of 285 – 287.
Coca-Cola (KO) is scheduled to report its Q2 2025 earnings on July 22, before the market opens. Revenue is expected to grow 1.9% year-over-year to $12.6 billion, while earnings are forecast to dip 1.2% to 83 cents per share. The company’s results are likely to benefit from product innovation and rising digital investments, with e-commerce growth doubling in several markets. Coca-Cola has been enhancing digital engagement and piloting new online initiatives, likely supporting its top-line performance.
Despite these efforts, KO continues to face volume pressure in key regions. North America and Mexico, major revenue drivers, have seen weak demand, raising concerns over growth sustainability in mature markets. This underscores the need for localised strategies and operational agility to offset headwinds and maintain momentum.
(Coca-Cola Daily Price Chart, Source: Trading View)
From a technical analysis perspective, Coca-Cola’s share price has been oscillating between the support zone of 68 – 69 and the resistance zone of 73 – 74 since late February 2025. Recently, the price rebounded from the support zone, which may lead to further upward movement. However, a strong catalyst is needed for the price to break out of either zone, and the next directional move is likely to follow the breakout's direction.
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