The US Dollar Index (DXY) has declined below 104.00 amid sliding equities and declining bond yields, despite positive ADP employment data. Market apprehension persists regarding impending US tariffs. Key resistance is observed near 104.10, while bearish pressure is evident below 103.90.
The US Dollar’s performance is subdued ahead of the anticipated White House tariff announcement. The ADP Employment Change report indicated a stronger-than-expected increase of 155,000 private-sector jobs in March, exceeding the projected 105,000.
Market participants are anticipating details regarding potential tariffs, with speculation suggesting a broad 20% imposition without exemptions. Such measures could potentially impact economic growth, contribute to inflationary pressures, and influence Federal Reserve policy.
Current market sentiment reflects pressure on stocks and crude oil, while gold is experiencing gains as investors seek safe-haven assets. The probability of a Federal Reserve rate cut in May remains low, but market volatility could increase depending on forthcoming economic data and trade policy developments.
Technical analysis indicates moderate downside pressure on the DXY near the 104.00 level. The Moving Average Convergence Divergence (MACD) continues to signal a buy, while the Relative Strength Index (RSI) remains neutral at 39.40, suggesting a lack of significant momentum.
