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Kyiv officials say Russia is attacking the capital with ballistic missiles.According to the New York Times: Iranian and U.S. officials have indicated that Iran is willing to shut down or suspend its nuclear program as a major concession to the United States.1. All three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose 1.05% to 49,407.66 points, the S&P 500 rose 0.54% to 6,976.44 points, and the Nasdaq Composite rose 0.56% to 23,592.11 points. Caterpillar Inc. rose more than 5%, and Walmart Inc. rose more than 4%, leading the Dow. The Wind U.S. Tech Giants Index rose 0.11%, with Apple Inc. rising more than 4% and Google Inc. rising more than 1%. The Nasdaq China Golden Dragon Index fell 0.65%, with XPeng Motors Inc. falling more than 8% and TAL Education Group Inc. falling more than 4%. Investors temporarily ignored the recent declines in silver and Bitcoin, and instead focused on the earnings reports of tech giants and the January non-farm payroll report. 2. All three major European stock indexes closed higher. The German DAX Index rose 1.09% to 24,806.1 points, the French CAC40 Index rose 0.67% to 8,181.17 points, and the UK FTSE 100 Index rose 1.15% to 10,341.56 points. 3. US Treasury yields rose across the board. The 2-year Treasury yield rose 4.71 basis points to 3.572%, the 3-year Treasury yield rose 5.66 basis points to 3.643%, the 5-year Treasury yield rose 4.52 basis points to 3.837%, the 10-year Treasury yield rose 4.39 basis points to 4.279%, and the 30-year Treasury yield rose 4.14 basis points to 4.912%. 4. The WTI crude oil futures contract closed down 4.42% at $62.33 per barrel; the Brent crude oil futures contract fell 4.1% to $66.48 per barrel. 5. International precious metals futures closed mixed. COMEX gold futures fell 1.35% to $4,680.90 per ounce, while COMEX silver futures rose 0.93% to $79.27 per ounce. Federal Reserve officials emphasized that interest rates would not be cut in 2026, maintaining a tight monetary policy. Hawkish nominees for chairman reinforced tightening expectations, boosting the dollar. Geopolitical safe-haven demand weakened, and exchanges increases in margin requirements exacerbated the clearing of leveraged funds. 6. London base metals all fell. LME copper fell 1.96% to $12,900 per tonne, LME zinc fell 2.45% to $3,318.5 per tonne, LME nickel fell 5.06% to $17,045 per tonne, LME aluminum fell 2.78% to $3,056.5 per tonne, LME tin fell 12.22% to $45,605 per tonne, and LME lead fell 1.92% to $1,970.5 per tonne.Nvidia (NVDA.O) shares rose as much as 0.8% in after-hours trading.OpenAI founder Altman: We are delighted to partner with NVIDIA (NVDA.O), whose AI chips are among the best in the world. We hope to become a major long-term customer.

The US Dollar Index (DXY) clings to 98.000 despite a gloomy mood and a need for safe havens

Larissa Barlow

Apr 01, 2022 10:11

  • The US Dollar Index closed March with a 1.65% rise, boosted by a bearish market attitude.

  • A protracted confrontation between Russia and Ukraine could benefit safe-haven assets.

  • Money market futures have priced in a 69.9 percent possibility of the Fed raising interest rates by 50 basis points at its May meeting.

  • DXY Price Prediction: The bias is upward, but a breach below 97.802 might allow for additional losses.

 

The US Dollar Index, usually known as DXY, is a measure of the value of the US dollar versus a basket of six currencies. It closed March positively, with a monthly gain of 1.65 percent, its best since November of 2021. At the time of writing, the US Dollar Index was at 98.348.

 

On the last trading day of March, the market was in a bad mood. Failure to reach a significant settlement in the Russia-Ukraine crisis leaves investors on edge, enhancing the dollar's prospects. Furthermore, money market futures forecast the Federal Reserve to raise interest rates by 50 basis points at its May and June meetings, keeping the US dollar on the rise.

 

The US Personal Consumption Expenditure (PCE), the Federal Reserve's preferred gauge of inflation, increased by 6.4 percent year on year in February, exceeding the previous 6 percent reading. Meanwhile, Core PCE, which excludes volatile items, increased by 5.4 percent year on year, exceeding the 5.5 percent predicted by analysts.

 

Simultaneously, the US Department of Labor released Initial Jobless Claims for the week ending March 26. The final result was 202K, which was more than the 197K predicted.

DXY Price Prediction: Technical Outlook

The US Dollar Index remains bullish, but is consolidating in the 97.800-99.418 zone. The 50-day and 200-day moving averages (DMAs) remain below the price with an upward slope, indicating that the uptrend is still in place.

 

On the upside, the DXY's first resistance level is 99.000. If the latter is breached, the YTD high of 99.418 will be revealed, followed by the crucial 100.00 barrier.

 

The DXY first support, on the other hand, would be 98.000. A definitive breach would reveal 97.802, which, if broken, would clear the road to 96.000, but it would encounter some obstacles on the way down. The 50-DMA at 97.196 would be the next level of support, followed by 96.000.


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