The American dollar reflects higher and wants to erase Monday's losses

The American Dollar begins to bounce before the American trading session on Tuesday after reaching three years on Monday.
Markets will want to check if the FED speakers will defend their chairman on Tuesday.
The American dollar index got stuck below 100.00 when Trump intensifies the attacks on the Fed Chairman Jerome Powell.

The American dollar index (DXY), which follows the results of the American dollar (USD) compared to the six main currencies, moves away from the three -year lowest level before the US trading session. Markets surprised because the US dollar hit Asian trade hours, while European and American markets traded constrained capacity due to Easter Banking Day on Monday. President Stan Chairman Jerome Powellcalling him the “main loser” for not lowering interest rates Looking at the ways of getting rid of the chairman, exerting further pressure down to the green.

ON Economic calendar The front, all eyes are on the leading data of shopping managers (PMI) on Wednesday in April and orders of robust goods on Thursday. This Tuesday, a lot of FED speakers are set in a queue, and less essential Richmond Fed production data will also be published in April.

On American stock markets, he will focus on calling for Tesla earnings (TSLA) on a bell closed in the USA, when the general director Elon Musk could announce the date of departure from the Department of Government performance (Doge).

Daily Digest Market Movers: End of musk in Doge?

At 13:30 GMT Patrick Harker, president of the Federal Reserve Bank in Philadelphia, participates in a seminar on economic development at the University of Pennsylvania, focusing on regional growth and financial inclusion.
At 14:00, GMT Vice -chairman Fed Philip Jefferson gives a speech on the “economic mobility and double mandate” at the peak of economic mobility in the Federal Reserve in Philadelphia in Philadelphia.
The Richmond Fed production indicator for April is to be in the same period, around 14:00 GMT. The expectations relate to further contraction to -6, originating with -4 in previous reading.
President Minneapolis Fed, Neel Kashkari, will speak around 17:40 GMT, taking part in questions and answers to the global peak of the commercial chamber in the USA in Washington.
Closing comments on this Tuesday around 22:00 GMT from the governor of the Federal Reserve Bank Adriana Kugler, who gives a speech on the “transfer of monetary policy” at Heller-Hurwicz Economics Institute 2025, Minneapolis.
After closing the US bell, all eyes will move to Tesla’s earnings. Rumors are that the chairman of Tesla Elon Musk is to announce on the day of his departure from the Department of the Government (Doge), NBC informs.
Actions are looking for on Tuesday with diminutive losses in Europe, while American actions are on average by almost 1%, because they try to bounce after Monday losses.
The Fedwatch CME tool shows the chance to reduce interest rates by the Federal Reserve at the May meeting at 10.4% in relation to the lack of changes at 89.6%. In June, the meeting still has about 62% chance of reduction of the rate.
10-year profitability in the US trad around 4.39% after American bonds have been selling quite significantly in the last few weeks.

American dollar index Technical Analysis: Watch out for a dead cat

USA Dollar index (DXY) For now, he will say goodbye to the 100.00 marker. The collected losses from Monday are consolidated on Tuesday, while the relative force indicator (RSI) penetrates in space. More disadvantages may be constrained from now on, because some technical reflection looks likely before DXY can drop the leg lower.

On the other hand, the first resistance is 99.58, which can cause solid rejection in any recovery attempts. If Dollar Bulls has returned, look for 100.22 with a crack above 100.00 as a stubborn signal of their return. Solid recovery would be a return to 101.90, which acted as the base line of the head and rescuers from 2023.

On the other hand, the low level 97.73 is very close and can crack at any time. Further below, quite gaunt technical support is 96.94 before it began to look at the lower levels of this modern price range. They would be on 95.25 and 94.56, which would mean fresh falls that were not perceptible from 2022.

American dollar index: daily chart

FAQ central banks

Central banks have a key ticket that makes sure that there is price stability in the country or region. The economies constantly face inflation or deflation when the prices of some goods and services range. Permanent rising prices of the same goods mean inflation, constant reduced prices for the same goods mean deflation. The task of the central bank is to maintain demand in a queue by adapting its policy. In the case of the largest central banks, such as the US Federal Reserve (FED), the European Central Bank (EBC) or Bank of England (Boe), the mandate is to keep inflation nearly 2%.

The central bank has one essential tool to obtain higher or lower inflation, and this by improving the rate of comparative policy, commonly known as the interest rate. In preliminary moments, the Central Bank will issue a statement with its rules and will provide additional justification why it remains or changes (cutting or wandering). Local banks will properly adapt their savings and loan rates, which in turn will make it tough for people to earn on savings or for companies to take loans and make investments in their companies. When the central bank significantly increases interest rates, it is called a monetary exacerbation. When it lowers its comparative indicator, it is called a cash chain.

The central bank is often politically independent. Members of the Central Bank Policy Council are passing a series of panels and interrogations before the appointment of the Polityka Council. Each member of this council often has some conviction about how the central bank should control inflation and subsequent monetary policy. Members who want very loose monetary policy, with low rates and inexpensive loans, in order to significantly escalate the economy, while being satisfied to see inflation slightly above 2%, are called “pigeons”. Members who rather want to see higher rates to reward savings and want to airy inflation all the time, are called “hawks” and will not rest until inflation has or is below 2%.

Usually there is a chairman or president who conducts every meeting, must create a consensus between hawks or pigeons and has its last word when it comes down to dividing the votes to avoid a draw 50-50 about whether the current policy should be adapted. The chairman will give speeches that can often be observed live, in which the current cash attitude and perspectives are communicated. The central bank will try to send its monetary policy without causing sudden fluctuations in rates, shares or currency. All members of the Central Bank will direct their position to markets before the politics event. A few days before the political meeting until the modern policy is transferred, the members must not be publicly talked to. This is called a period of blackout.