The US dollar index at the present time remains above 102.00 while the markets are afraid
- Greenback decreases against most major currencies as American definitions affect markets.
- The stocks are drowned with China, which has fallen backward in the United States, Bessnt warns China and other countries not to unify efforts.
- The US dollar index on the feet, although it begins to recover during the European session.
The US dollar index (DXY), which tracks the performance of the US dollar (USD) against six major currencies, is to correct the previous day and hover about 102.00 at the time of writing this report on Wednesday. The Chinese Ministry of Finance has released anti -all American goods with 84 % as of April 10. The US Secretary of the United States, Scott Payette, was quick to respond after Chinese communication.
Pesint said that China will be the only losing nation in this tariff war, and it is better to come to the table to negotiate, according to Bloomberg reports. The Secretary of China also warned against reducing the value of its currency, that it will not be able to circumvent these definitions by doing this. Pesin also described a potential alignment from Europe with China, as it is Europe “cut off its throat.”
Meanwhile, the President of the United States (the United States), Donald Trump, actually on his social network on Wednesday, urged the nation to “be cold”, because everything will work well, “according to Bahaa Al -Akhbar reports. It seems that the comments with previous comments from US Treasury Secretary Scott Beesant are trying to calm the markets because nervousness clearly began to spread among all ranks in the American commercial, political and social classes.
on Economic evaluation At the forefront, some light data is scheduled to be published on Wednesday before the Federal Open Market Committee (FOMC) for the FBI’s monetary policy meeting in March. However, it is not expected a lot of minutes, such as the federal reserve Chairman of the Board Jerome Powell He said last week that the central bank will be in a “waiting and vision” mode. Meanwhile, the markets accumulate for more stakes to reduce interest rates by the Federal Reserve in 2025.
Daily Digest Market Movers: Federal reserve members are trying to remain calm
- China has issued comments that it is scheduled to impose a tariff close to 84 % on all American goods starting from April 10, according to Bloomberg reports.
- At 11:00 GMT, the Mortgage Banking Association issued the weekly mortgage requests numbers. The actual number was 20 % fixed leap compared to the previous number of -1.6 %.
- The Speaker of the House of Representatives at Minneapolis Neil Kashkari said that all options on the table are both cuts in prices and increase prices, according to Bloomberg reports.
- Wholesale inventory data came in February as expected when 0.3 % grow.
- At 16:30 GMT, Richmond team leader Thomas Parkin will speak at the Economic Club in Washington.
- At 18:00 GMT, FOMC minutes will be released from their last meeting in March.
- The stocks are sinking again after China took revenge on the American definitions. All major shares decreased at least 2 % on average a day. American stocks are strange at the present time and turn green with Nasdak’s leadership to a 1 % increase.
- The CME Fedwatch tool shows the opportunity to reduce the interest rate by the Federal Reserve at the May meeting to 53.5 %, compared to only 10.6 % per week. For the month of June, the chances of low borrowing costs are 100 %, with 55.2 % expected to reduce 50 basis points (BP).
- US revenues are trading for 10 years about 4.36 %, and continues to upgrade higher while the Fedwatch tool is witnessing more bets that are reduced.
Technical analysis of the US dollar index: Do we start talking about a decline in less than 100.00?
the US dollar index (DXY) fell down earlier on Wednesday and it appears to be axial support at 101.90 at the present time. However, the question remains that with this customs tariff and once American economic data starts, DXY may see more pressure on the sale. This may mean an additional weakening of the green leather in the coming weeks or months, even with the effect of these definitions only now.
If we look up, the first level to pay attention is 103.18, which supported DXY in March and is now strong resistance. Above there, 104.00 round and simple moving average is run for 200 days (SMA) at 104.85.
On the negative side, 101.90 is the first defense line, and it should be able to launch the renovation because it was able to keep the last declining momentum last week and did it again earlier on Wednesday. Perhaps not Wednesday, but in the coming days, he can see a break less than 101.90 legs less about 100.00.
US dollar index: daily chart
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidents, the remaining regional regional, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The Federal Reserve’s favorite federal weapon was during the great financial crisis in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.
