- The American dollar index is listed slightly upwards, reversing part of Monday’s retreat.
- The widest trend is still bassist despite the modest intradic gains and mixed feeling.
- The technicians show key levels of resistance forming in the midst of down pressure.
- Attention focuses on GDP, underlying PCE and non -agricultural payrolls later this week.
The American dollar index (DXY), which measures the value of the US dollar in front of a foreign exchange basket, is showing moderate profits on Tuesday after the weak data of the labor market and the feeling of the consumer increased the expectations of a relief in politics. The index remains under pressure despite commercial holders and the strength of the sharing market.
Daily summary of market movements: the US dollar is stabilized while weak employment and trust data weigh on prospects
- The Dow Jones industrial average rose more than 300 points, winning 0.80% on Tuesday, since the weakest US data pushed the treasure yields and supported the actions.
- The US Labor Statistics Office reported that employment offers fell to 7.19 million in March, below the expected 7.5 million, indicating weakness in labor demand.
- The Conference Board Conference Conference Index drastically fell to 86.0 in April from 93.9, its lowest reading since April 2020.
- The Secretary of Commerce Howard Lutnick presented the White House plans to support US car manufacturers; Tariff concessions were made for some imported pieces of cars.
- The comments of the US Treasury Secretary Scott Besent failed to reassure the markets, noting that commercial agreements with China are weeks away and progress with India and Japan is still vague.
- Amazon’s shares fell after reports suggested that the company could list online tariff costs; The company then denied that it would.
- China decided to renounce its recently 125% tariff Tax on ETA imports of the US, reliefing some pressure on energy markets.
- The manufacturing index of the Dallas Fed fell to its weakest level since May 2020, reinforcing the stain narrative that is being formed in the US regions.
- The probabilities of a Fed rates cut in June increased to 56.8% after the weakest employment and feeling data increased concerns about economic impulse.
- Investors expect the GDP of the US Q1 2025, the April underlying PCE, the ISM manufacturing PMI and non -agricultural payroll later this week.
Technical analysis: DXY demonstrates moderate profits despite the bassist image
The DXY is showing a slight intradic gain around 99.20, although the broader trend remains bassist. The price action is trapped between 98.95 and 99.37. The impulse is mixed, with the mobile convergence/divergence (MACD) average showing a purchase signal, while the relative force index (RSI) (35.71) and the ultimate oscillator (50.06) remain neutral. The simple mobile average (SMA) of 20 days (100.79), the 100 -day SMA (105.64) and the 200 -day SMA (104.48) suggest a bearish continuation. The additional pressure is confirmed by the 10 -day exponential (EMA) mobile average (99.64) and the 10 -day SMA (99.35). Resistance levels are found in 99.26, 99.35 and 99.64.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
