US Dollar Index remains capped below 105.00, focus on US data, Fed’s Powell speech

The US Dollar Index (DXY) loses ground around 104.75 after retracing from the weekly top of 105.10 on Wednesday.
Fed’s Mester said she expects rate cuts this year but ruled out the next policy meeting in May.
The US February JOLTS Job Openings rose to 8.756M in February against 8.748M prior, better than estimated.
Investors await the Fed’s Powell speech for fresh catalysts.

Lallalit Srijandorn FXStreet

The US Dollar Index (DXY) trades in negative territory for the second consecutive day near 104.75 during the early European session on Wednesday. The DXY has retreated from the weekly top of 105.10 following the dovish comments from Federal Reserve (Fed) policymakers on Tuesday. The attention will shift to the US ADP Employment Change and the ISM Services PMI, due on Wednesday.

On Tuesday, Cleveland Fed President Loretta Mester said that she expects the US central bank to cut rates this year. Mester noted that the June policy meeting is possible if the data allows it. Meanwhile, San Francisco Fed President Mary Daly stated that three rate cuts this year are a “very reasonable baseline”. However, she acknowledged that the labor market remains strong and growth is continuing. So there's no urgency to adjust the rate. Financial markets are now pricing in about a 65% odds of a rate cut by June, down from about 70% after the Fed's March meeting, according to the CME FedWatch Tool.

Data released from the US Bureau of Labor Statistics on Tuesday showed that February JOLTS Job Openings rose to 8.756M in February from a downwardly revised 8.748M in the previous month, better than market expectations. Additionally, Factory Orders improved to 1.4% MoM in February from a 3.8% decline in the previous reading.

On the other hand, the rising geopolitical tensions in the Middle East and Russia-Ukraine might boost safe-haven assets, benefiting the US Dollar. On Monday, warplanes attacked a building inside Iran's consulate complex in Syria, and some of the most senior members of Iran's Revolutionary Guard were killed. Additionally, there are reports of new attacks on commercial ships in the Red Sea.

Investors will also monitor the Fed’s Powell speech later on Wednesday, which might offer some hints about the monetary policy and interest rate outlook. In case Fed’s Powell delivers some hawkish comments, this could lift the Greenback against its rivals in the near term.

Dollar Index Spot

Overview
Today last price	104.75
Today Daily Change	-0.02
Today Daily Change %	-0.02
Today daily open	104.77

Trends
Daily SMA20	103.76
Daily SMA50	103.87
Daily SMA100	103.37
Daily SMA200	103.77

Levels
Previous Daily High	105.1
Previous Daily Low	104.68
Previous Weekly High	104.73
Previous Weekly Low	104.01
Previous Monthly High	104.73
Previous Monthly Low	102.35
Daily Fibonacci 38.2%	104.84
Daily Fibonacci 61.8%	104.94
Daily Pivot Point S1	104.6
Daily Pivot Point S2	104.43
Daily Pivot Point S3	104.17
Daily Pivot Point R1	105.02
Daily Pivot Point R2	105.27
Daily Pivot Point R3	105.44

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

GBP/USD back to 1.3250, down modestly for the day

GBP/USD now comes under fresh downside pressure and recedes toward the mid-1.3200s on Tuesday, partially reversing the optimism seen at the beginning of the week. Meanwhile, Cable’s bearish tone follows the resumption of the upside traction in the Greenback, always amid the sharp rally in USD/JPY.

EUR/USD looks inconclusive in the low 1.1400s

EUR/USD alternates gains with losses in the 1.1420 region in the latter part of the NA session on turnaround Tuesday. The pair’s vacillating price action comes amid the lack of clear direction in the US Dollar. Meanwhile, market participants are expected to gear up for the upcoming key releases on the US docket and developments from the ECB Forum in Sintra.

Gold clings to daily gains beyond $4,000

Following multi-month lows near $3,950, Gold now manages to regain some composure and reclaim the area beyond the key $4,000 yardstick per troy ounce on Wednesday. Still, any meaningful recovery appears limited as a broadly firmer US Dollar and rising US Treasury yields weigh on the yellow metal.

Coinbase, BlackRock, Visa and Stripe support Open Standard’s OUSD stablecoin

Open Standard on Tuesday unveiled Open USD (OUSD), a dollar-pegged stablecoin designed for global payments, backed by more than 140 companies. The founding coalition spans payment networks, banks, fintech firms, technology platforms and crypto infrastructure providers, including Shopify, Google, Ripple, Solana, Coinbase, Visa, Mastercard, Stripe, BlackRock and BNY.

Why a hawkish Bank of Japan could trigger the next Bitcoin sell-off

The Japanese Yen hits a 40-year low of 162.00 against the US Dollar, raising concerns about intervention or additional rate hikes by the Bank of Japan. BoJ may sell US Treasuries to buy back Yen, potentially pushing US bond yields higher and making Bitcoin less attractive to investors.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.