The US Dollar Index (DXY) is stable at around 104.30, following positive Durable Goods Orders for February, which rose by 0.9%, surpassing the forecast of -1%. Upward revisions also increased the previous month’s figure from 3.2% to 3.3%.
Support for the DXY is seen at 104.00, while potential buying pressure arises from anticipated Copper tariffs. However, the ongoing Russia-Ukraine negotiations may exert downward pressure on the Dollar.
Federal Reserve Expectations
Further insights from the Federal Reserve officials are expected later in the day, possibly influencing market sentiment. In comparison, equity performance remains subdued, with slight gains in Asia and losses in Europe and the US.
The Dollar Index remains steady around 104.30, largely due to new economic data that exceeded expectations. Durable Goods Orders rose by 0.9% in February, defying forecasts of a decline. Even better, last month’s numbers were revised slightly higher, suggesting demand strength is holding up.
For those tracking levels, the 104.00 mark is proving to be a short-term base. Traders seem hesitant to let it dip below this point, given other factors that could keep buyers interested. One of these is the potential for tariffs on Copper, which could tilt demand towards US assets. At the same time, diplomatic efforts concerning the Russia-Ukraine situation are unpredictable. If meaningful progress is made, there is room for the Dollar to soften.
Market Sentiment And Equities
Later today, central bank speakers may shed more light on policy direction. Their remarks could sway sentiment, as markets are looking for any clues on future rate adjustments. Meanwhile, equities continue to struggle for clear direction. Asian markets have posted mild gains, whereas both European and US indices remain under pressure. This tells us that investors are not rushing towards riskier assets, leaving the Dollar in a relatively firm position.
