- The US Dollar relinquished prior gains and is trading without significant movement at 99.00, as indicated by the US Dollar Index.
- Bond and stock values increased following President Trump’s revised statements regarding China and the Federal Reserve.
- The US Dollar Index is still struggling to surpass the 100.00 level and could experience a decline due to a potential technical rejection.
The US Dollar Index (DXY), which measures the US Dollar’s (USD) strength against a basket of six major currencies, is trading relatively unchanged near 99.00 as of Wednesday, after an initial rise during the Asian trading session toward the key 100.00 mark. This upward movement in the DXY was prompted by remarks from US President Donald Trump on Tuesday, who stated that he had no intention of dismissing Federal Reserve (Fed) Chairman Jerome Powell, despite his dissatisfaction with elevated interest rates. Furthermore, the President suggested a more conciliatory approach toward China, indicating that tariffs could be significantly reduced if they engage in negotiations, according to Bloomberg.
Regarding the economic calendar, the primary focus is on the preliminary Purchasing Managers’ Index (PMI) data for April from S&P Global. Market participants have already gained insight from the European PMI figures compiled by S&P Global and Hamburg Commercial Bank (HCOB) earlier today. A prevailing trend in major European economies is the contraction of the Services sector in Germany, France, and the Eurozone overall, with results falling short of expectations across the board.
