- The index stays below the 94.00 handle ahead of the opening bell in Europe.
- US 10-year yields rebound to the 2.84% area following post-NFP lows.
- Rising tensions in the US-China trade war are poised to dominate sentiment.
The greenback, in terms of the US Dollar Index (DXY), has started the week on the back footing and is now poking with session lows in the 93.90 region.
US Dollar looks to Trump, trade war
The index is down for the fourth session in a row on Monday as market participants continue to digest Friday’s release of US Non-farm Payrolls.
In fact, the greenback remains under pressure despite the creation of job in the US stays on track, although the unemployment rate ticked higher and inflation pressure via wages decelerated somewhat during last month.
Further out, yields in the US money market are bouncing off recent lows in the 2.80% neighbourhood in response to an escalation of the US-China trade war, with both countries imposing tariffs on goods worth $3.4 billion on each other.
No data releases scheduled for today in the US docket should leave the attention to trade war headlines, while investors will also be wary on increasing political effervescence in the Old Continent.
US Dollar relevant levels
As of writing the index is down 0.16% at 93.86 and a breakdown of 93.79 (55-day sma) would target 93.19 (low Jun.14) en route to 93.12 (38.2% Fibo of April-June up move). On the flip side, the next hurdle is located at 94.04 (23.6% Fibo of April-June up move) followed by 94.51 (10-day sma) and then 94.61 (21-day sma).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.