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


  • US Dollar Index extends its losses after mixed 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 survey showed that the private sector added 184K new positions in March, surpassing February's rise 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.

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 this year.

Market participants are closely monitoring 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

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD retreats below 1.0650 after upbeat US data

EUR/USD retreats below 1.0650 after upbeat US data

EUR/USD lost its traction and declined below 1.0650 in the early American session on Monday. The upbeat Retail Sales data from the US helped the US Dollar regather its strength and caused the pair to turn south.

EUR/USD News

USD/JPY sits at multi-decade high near 154.00 as Japan's intervention risks loom

USD/JPY sits at multi-decade high near 154.00 as Japan's intervention risks loom

USD/JPY is sitting at multi-decade highs shy of 154.00 in the European session on Monday. The Japanese Yen continues to be undermined by the BoJ’s uncertain outlook about future rate hikes. Intervention fears and persistent geopolitical tensions could help limit losses for the safe-haven JPY. 

USD/JPY News

Gold continues to fluctuate at around $2,350

Gold continues to fluctuate at around $2,350

Following a bullish opening to the week, Gold went into a consolidation phase at around $2,350 on Monday. The benchmark 10-year US Treasury bond yield is up nearly 2% after strong US data, not allowing XAU/USD to push higher.

Gold News

XRP price recovers from nearly eleven month low of $0.41 as developers propose native lending on XRPLedger

XRP price recovers from nearly eleven month low of $0.41 as developers propose native lending on XRPLedger

Ripple price recovered from weekend low of $0.4188, surged past $0.50 on Monday. XRPLedger developers have proposed a Native Lending Protocol to help Ripple establish a foothold in DeFi, lending and borrowing for users. 

Read more

Week ahead: Data from the US, UK and Canada in focus

Week ahead: Data from the US, UK and Canada in focus

Similar to Fed and ECB pricing, swaps traders have scaled back bets of rate cuts for the Bank of England (BoE’s) Bank Rate to below 50bps for the year.

Read more

Forex MAJORS

Cryptocurrencies

Signatures