USD Index depreciates on dovish tone surrounding Fed’s rates trajectory, clings to 104.20

Source Fxstreet
Apr 4, 2024 04:49
  • US Dollar Index extends its losses after mixed US key figures from the United States.
  • US ISM Services PMI fell to 51.4; ADP Employment Change added 184K in March.
  • Fed’s Powell stated that interest rate is likely at its peak in the current cycle.

The US Dollar Index (DXY), which gauges the value of the US Dollar (USD) against the six major currencies, remains in the negative territory for the third successive day, hovering around 104.20 during the Asian trading hours on Thursday. The Greenback faced challenges due to the dovish tone surrounding the Federal Reserve’s (Fed) interest rates trajectory.

Investors across the Atlantic have fully priced in a 25-basis point cut by the Federal Reserve in July. On Wednesday, US ADP Employment Change added 184K in March, surpassing February's hike of 155K and exceeding the market consensus of 148K, highlighting the labor market’s resilience. Meanwhile, the US ISM Services PMI fell to 51.4 from 52.6 in February, falling short of the expected level of 52.7.

In his remarks at the Stanford Graduate School of Business, Federal Reserve Chairman Jerome Powell reiterated once again that the policy rate is likely at its peak in the current cycle. He stated the US central bank's readiness to implement rate cuts, emphasizing a data-dependent approach.

Additionally, Atlanta Fed President Raphael Bostic also advocated for a rate cut in the final quarter of 2024. Adriana Kugler, a member of the Fed Board of Governors, emphasized that the ongoing disinflationary trend would require rate reductions, with expectations of at least three cuts by the last quarter of 2024.

Market participants are anticipated to closely monitor the release of US labor data, with Initial Jobless Claims for the week ending on March 29 scheduled for Thursday, and Average Hourly Earnings and Nonfarm Payrolls data set to be released on Friday.

Dollar Index Spot

Overview
Today last price 104.2
Today Daily Change -0.05
Today Daily Change % -0.05
Today daily open 104.25
 
Trends
Daily SMA20 103.8
Daily SMA50 103.89
Daily SMA100 103.37
Daily SMA200 103.78
 
Levels
Previous Daily High 104.84
Previous Daily Low 104.23
Previous Weekly High 104.73
Previous Weekly Low 104.01
Previous Monthly High 104.73
Previous Monthly Low 102.35
Daily Fibonacci 38.2% 104.47
Daily Fibonacci 61.8% 104.61
Daily Pivot Point S1 104.04
Daily Pivot Point S2 103.83
Daily Pivot Point S3 103.42
Daily Pivot Point R1 104.65
Daily Pivot Point R2 105.05
Daily Pivot Point R3 105.26

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Dow Jones Industrial Average tumbles over 400 points on Thursday as rate cut hopes deflateThe Dow Jones Industrial Average (DJIA) tumbled on Thursday, falling -380 points and tumbling below 39,300.00 as investors pullback in the face of declining hopes for a September interest rate cut from the Federal Reserve (Fed).
Source  Fxstreet
The Dow Jones Industrial Average (DJIA) tumbled on Thursday, falling -380 points and tumbling below 39,300.00 as investors pullback in the face of declining hopes for a September interest rate cut from the Federal Reserve (Fed).
placeholder
Forex Today: The Dollar lost its grip after a steady FedThe Greenback gave away Tuesday’s advance amidst declining US yields across the curve, all after the Fed left its interest rates unchanged, as expected, and Chief Powell ruled out an interest rate hike as the Fed’s next move.
Source  Fxstreet
The Greenback gave away Tuesday’s advance amidst declining US yields across the curve, all after the Fed left its interest rates unchanged, as expected, and Chief Powell ruled out an interest rate hike as the Fed’s next move.
placeholder
Treasury Secretary Yellen: Shelter inflation likely to fall in the next yearAccording to US Treasury Secretary Yellen, inflation remains high but is assuring markets that data continues to point towards a recovery on US price growth and economic activity.
Source  Fxstreet
According to US Treasury Secretary Yellen, inflation remains high but is assuring markets that data continues to point towards a recovery on US price growth and economic activity.
goTop
quote