- The American dollar index increases to the third session in a row.
- Geopolitical risk maintains the demand for green.
- The FED repeats the obligation to reduce the rates of 2025, the US gives slip, but the dollar is still gaining.
The American dollar index (DXY), which measures the value of the American dollar (USD) in relation to the currency basket, is higher on Friday, helped by a wave of geopolitical anxiety. Despite the retreat in terms of the treasure’s profitability and confirmation by the federal reserve (FED), its cutting path on 2025, Greenback is a diminutive basis. The index is trying to break free from the low -range march on the third day in a row.
Daily Digest Market Movers: American Dollar has profits despite lower pensions
- The expectations of the FED rates remain stable, with high probability that the rates will remain unchanged in May and move lower to the middle part.
- The 10-year profitability retreats, currently about 4.20%, are approaching levels recently at the beginning of March, when investors are leaning in bonds.
- The Fed Governor Christopher Waller supports the maintenance of the current rate of balance reducing, strengthening the indefinite attitude of the central bank.
- Despite the softer profitability of the American dollar, because investors weigh on global risk events.
- Market participants will arouse geopolitical hotspot points, including continuous instability in the Middle East and Eastern Europe, which still support the green place.
Technical analysis: DXY eyes are reflected despite the bears of signals about the average movable
The American dollar index shows early signs of recovery from marching falls, supported by defensive flows and stable Fed guidelines. The relative strength (RSI) indicator gradually climbs, while the histogram of the movable medium convergence (MacD) shows the softening of the draft.
Immediate resistance is nearly 104.20, followed by 104.80 and 105.20, while 103.40 serves as nearby support, before 102.90. Bears between 20-day and 100-day straight average traffic near 105.00 acts as a potential technical sales signal. However, with the stabilization of moods, the index looks like further recovery from the March base.
