US Dollar Index (DXY) fades the previous day’s corrective bounce off a five-week low as it drops to 103.17 during the initial hours of Wednesday. In doing so, the greenback’s gauge versus the six major currency pairs declines for the fifth consecutive day while tracing the inability of the US Treasury bond yields to defend the two-day rebound from the multi-week low as the key Federal Reserve (Fed) decision loom.
The DXY managed to bounce off the lowest levels since mid-February the previous day as the market sentiment improved on comments from the US policymakers, as well as actions, to tame the fears emanating from the latest banking fallouts. Also underpinning the US Dollar Index rebound could be the hawkish Fed bets, marking nearly 88% chance of the US central bank’s 0.25% rate hike in today’s Federal Open Market Committee (FOMC) monetary policy meeting.
That said, US Treasury Secretary Janet Yellen’s comments gained major attention as she said, "Treasury, Fed, FDIC actions reduced risk of further bank failures that would have imposed losses on deposit insurance fund." Earlier on Tuesday, Bloomberg shared the news stating that the “US officials are studying ways they might temporarily expand Federal Deposit Insurance Corporation (FDIC) coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis.”
Elsewhere, the US Existing Home Sales for February marked a notable jump of 14.5% versus 0.0% expected and -0.7% prior. However, the Philadelphia Fed Non-Manufacturing Business Outlook survey gauge dropped to -12.8 in March and tamed the US Dollar-linked optimism afterward.
As per the latest banking updates, the US policymakers are discussing ways to surpass the US Congress to defend the banks while the First Republic Bank eyes government help to encourage buyers.
Against this backdrop, S&P 500 Futures remain directionless at a fortnight high after rising in the last two consecutive days while the US Treasury bond yields struggle to extend two-day rebound from the lowest levels since September 2022.
Looking ahead, DXY traders should concentrate on the ways in which the Fed can sound hawkish despite the looming banking crisis and a likely nearness to the policy pivot.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.