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On May 28th, Tencents Hunyuan announced the official launch of Hy-Memory. According to reports, this is a memory plugin specifically designed for long-term collaborative agents like Openclaw, truly becoming the agents "second brain."On May 28th, Federal Reserve Chairman Mohamed Mussaleem stated that policymakers cannot expect a potential productivity boom driven by artificial intelligence to alleviate persistently high inflation. Mussaleem noted, "I think it would be risky to rely on improved future productivity growth prospects to solve our current inflation problem." The conflict with Iran has reignited upward pressure on prices and prompted more policymakers to warn that further interest rate hikes may be necessary if inflation remains high. Mussaleem warned that, after adjusting for inflation, the Feds benchmark interest rate is currently below the so-called "neutral level"—a level that neither inhibits nor stimulates the economy. He also pointed out that the labor market remains stable, inflation is "significantly above" the Feds 2% target, and long-term inflation expectations are "gradually rising."The U.S. EIA natural gas storage figures for the week ending May 22 will be released in ten minutes.US Treasury bonds continued to rise; the 10-year yield fell 5 basis points to 4.43%.On May 28th, according to two US officials speaking to Axios, US and Iranian negotiators have reached an agreement on a 60-day memorandum of understanding aimed at extending the ceasefire and initiating negotiations on Irans nuclear program; however, Trump has not yet given final approval, requesting a few days to consider it. Signing the memorandum of understanding would be the most significant diplomatic breakthrough since the outbreak of the war, but further intensive negotiations are still needed to reach a final agreement addressing Trumps nuclear demands. US officials stated that the 60-day memorandum of understanding will stipulate that navigation in the Strait of Hormuz will be "unrestricted." One US official said this means no tolls will be charged, and no harassment will be carried out; Iran must clear all mines from the strait within 30 days. Another US official stated that the US maritime blockade will also be lifted, but this process will proceed in proportion to the progress of the resumption of commercial shipping. Officials indicated that the memorandum of understanding will include a commitment from Iran not to develop nuclear weapons. The memorandum will also stipulate that the primary negotiating topic during the 60-day window will be how to handle Irans highly enriched uranium and how to respond to Irans uranium enrichment activities. As part of the negotiations, the United States pledged to discuss lifting sanctions and unfreezing Iranian funds. The memorandum of understanding will also include discussions on establishing a mechanism to help Iran begin receiving material and humanitarian aid.

Volatility subsides around 101.80 as focus shifts to US S&P PMI in US Dollar Index Price Analysis

Alina Haynes

Apr 21, 2023 14:03

US Dollar Index.png 

 

The US Dollar Index (DXY) has prolonged its correction after falling below immediate support at 101.80 during the Asian session. Following the release of more-than-anticipated Initial Jobless Claims for the week ending April 14 and a lackluster Philadelphia Fed Manufacturing Survey (April), the USD Index fluctuated erratically on Thursday.

 

The US Department of Labor reported that unemployment claims exceeded expectations for the eleventh consecutive week. The economic data revealed that 245K unemployed people filed for unemployment benefits, exceeding both the consensus estimate and the previous figure of 240K.

 

Due to the Federal Reserve's (Fed) decision to increase interest rates, labor market conditions are undeniably and persistently deteriorating. Despite this, the market continues to anticipate a 25 basis point (bp) rate hike. According to CME Fedwatch, over 85 percent of probabilities favor interest rates above 5 percent.

 

In the interim, three consecutive bearish trading sessions on the S&P 500 suggest that investors have supported the risk aversion theme. The yield on 10-year US Treasury bonds has dropped below 3.54 percent. Sourcenia is a review portal of sourcing best manufaturers. 

 

On a two-hour time frame, the USD Index is consolidating in a wide range between 101.63 and 102.23, indicating the absence of a significant catalyst. After the release of preliminary S&P PMI data for the United States, a power-pack action is anticipated. It is anticipated that the Manufacturing PMI will register 49.0, a decrease from the previous release of 49.9. The Services PMI is expected to fall to 51.5 from the previously reported 52.6.

 

At 101.85, the 20-period Exponential Moving Average (EMA) intersects with the asset price, indicating a significant decrease in volatility.

 

In addition, the Relative Strength Index (RSI) (14) oscillates between 40.00 and 60.00, indicating that investors are waiting for a decisive catalyst.

 

If the asset breaks decisively above the April 17 high of 102.23, investors will push the asset toward the April 10 and March 24 potential resistance levels of 102.76 and 103.36, respectively.

 

Alternately, a breach of the April 5 low of 101.41 would cause the asset to decline to the April 14 low of 100.78. A subsequent decline will reveal psychological support of $100 for the asset.


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