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The US dollar index fluctuates below the 100 mark, and the market pays attention to the initial data of the US
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Hello everyone, today XM Forex will bring you "[XM Group]: The US dollar index fluctuates below the 100 mark, and the market is paying attention to the initial data of the United States." Hope it will be helpful to you! The original content is as follows:
On Thursday, the US dollar index hovered around 99.50. This trading day will usher in the European Central Bank interest rate resolution, and the market is generally expected to fall by 25 basis points; in addition, changes in the number of initial unemployment benefits in the United States, the initial value of the annualized total construction permits in the United States in March, and the total annualized number of new houses in the United States in March will be released. Investors need to pay attention. Friday is the Good Friday holiday, and investors should also beware of the position adjustments of brokers before the holiday.
Analysis of major currencies
Dollar: As of press time, the U.S. dollar index hovers around 99.48, and traders continue to bet on the Fed's interest rate cut this year after Fed Chairman Jerome Powell said that the central bank is in a good position to wait for greater clarity before making changes in policy stance. Judging from the daily chart, the US dollar index is in a larger-level downward channel. The price has been falling from the high point of 110.1699, forming a clear downward trend line. Recently, the price has fallen below the 100 integer mark and is currently trading around 99.50. The daily MACD indicator shows that the DIFF is -1.3009, the DEA is -0.9727, the MACD value is -0.6564, and the bar chart expands, confirming the acceleration of the medium-term downward trend. The RSI indicator is located at the low level of 26.5350 and is already oversold, suggesting a possible technical rebound. However, from the perspective of trend integrity, unless the price can re-establish the downward trend line of 100.3280, the medium-term short pattern will be difficult to reverse.
1. Powell: The Federal Reserve is ready to provide US dollar liquidity at any time
Feder Chairman Powell said Wednesday that the Federal Reserve is ready to provide US dollar liquidity if necessary through its swap quotas with other central banks. Powell said in response to a question at an event at the Chicago Economic Club: "We want to ensure the availability of the dollar." He said: "The reason we do this is that it is very beneficial to American consumers. Therefore, we will continue to do this because the dollar is part of the global reserve currency."
2. Powell: Don't expect the Fed to take action to save the market. Trump is changing every day.
Fed Chairman Powell said Wednesday that the market's expectation that the Fed will take action to calm the volatility may be wrong. When asked if the Fed would intervene in response to the sharp decline in stock markets, Fed Chairman Powell said: "My replyThe answer is no, but I will give an explanation. "I think the market is digesting the current situation, and the market is dealing with a lot of uncertainty, which means volatility," Powell said in a meeting in Chicago. "Powell said that given the huge changes in the tariff system of U.S. President Trump, it is understandable that the market will have difficulties. He also explained that it is difficult to know in real time what is causing the trouble. "I have had a lot of experience with major market volatility, such as the bond market," Powell said. Usually people will form an idea and look back two months later and find that their original view is xmtraders.completely wrong. Therefore, it is too early to determine what is going on in the market. "For now, he noted that the market turmoil stems from hedge funds cutting leverage or debt, adding: "In the short term, you may continue to see market volatility." ”
3. Bank of Canada says U.S. tariffs may drag down Canadian economy into a deep recession
According to a forecast released by the Bank of Canada on Wednesday, Canada's inflation rate will climb and fall into a deep recession if U.S. tariffs trigger a global trade war. The Bank of Canada did not release regular quarterly economic forecasts on the grounds of high uncertainty. Instead, it offers two possible scenarios. In the first case, most tariffs are cancelled through negotiations, and economic growth in Canada and globally weakened temporarily. Canada Inflation fell to 1.5% in one year before returning to the bank’s 2% target. The second scenario is that tariffs trigger a lasting global trade war. The Canadian economy fell into a severe recession, with inflation soaring above 3% in mid-2026 before returning to 2%. The Bank of Canada stressed that there are many other possible situations, which estimates GDP growth in the first quarter to be 1.8% annually, down from the 2.0% forecast at the end of January.
4. U.S. retail sales surged in March due to buying cars before tariffs
U.S. retail sales soared in March as U.S. households increased their purchases of cars before tariffs were imposed, but concerns about the economic outlook were hurting discretionary spending. Automakers reported a sharp increase in car sales in March, some attributed it to buyers’ rush to “try to avoid tariffs.” Consumers are also stocking up other imported goods. Bank credit and debit card data shows that high-income households continue to drive consumption, while low-income consumers struggle. Disposable spending has decreased, mainly used in the service industry, the economy’s main engine. p>
5. UK inflation declines, and the Bank of England is expected to cut interest rates multiple times in the future. HSBC economist Chris Hale said in a report that the decline in the UK's inflation rate in March is good news, especially as service prices drop, which is consistent with the Bank of England's continued interest rate cuts in the future. Overall inflation fell from 2.8% in February to 2.6%, and the service industry's inflation rate fell from 5.0% to 4.7%. He said the decline in the service industry is a particularly positive development, especially because it involves the entertainment industry and alcohol.Store industry, not a one-time drag from a single industry. Developments since the U.S. announced the increase in tariffs show that the trend of inflation is still continuing. However, March data heralds a series of price increases, which could push overall inflation above 3% in April. However, Hale said the Bank of England is still likely to cut interest rates every quarter. Institutional View
1. Rabobank: Switzerland may be listed as a exchange rate manipulator by the U.S. Treasury
Raobank foreign exchange strategist Jane Foley said that if Switzerland interferes in the foreign exchange market to prevent the appreciation of the Swiss franc, Switzerland may be listed as a exchange rate manipulator by the U.S. Treasury. She said President Trump was "always moved" with countries that used intervention to weaken their own currencies. Generally speaking, the US Treasury "a little turned a blind eye" to Switzerland because the Swiss franc is overvalued. However, the U.S. Treasury will not like Switzerland's massive intervention, especially considering Switzerland's trade surplus. There is no doubt that this is a consideration when imposing tariffs on Switzerland.
2. Mitsubishi UF: The ECB will emphasize economic growth risks and is unlikely to send new signals
Mitsubishi UF's head of European economic research said in a report that the ECB's statement at its meeting on Thursday may contain "moderate dovish adjustments" that may emphasize the risks facing eurozone growth. Thursday's rate cut looks like a straightforward decision, and it may be the same in June. However, given the high uncertainty of trade policies and the timing of new fiscal stimulus, the ECB is unlikely to send too many new policy signals. Policymakers may want to maintain a lot of flexibility in the absence of a clearer shift in the eurozone economic hard data. The ECB is expected to cut interest rates three more times this year, with deposit rates lowering to 1.75%.
3. Jefferies: The era of a strong dollar has reached its peak, and the dollar may weaken further
The dollar fell due to continued concerns that Trump's tariffs will affect the US economy. "People have questioned the credibility of the US exceptionalism and the dollar as a reserve currency," Jefferies economist Mohit Kumar said in a report. In the medium term, tariffs may reduce the reliability of the United States and investors will look for other destinations. He said the era of a strong dollar has reached its peak and the dollar may weaken further. Gold prices may benefit as central banks seek to reduce their dependence on the dollar.
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