US Dollar is on track for a fifth straight day of gains, but it could be shattered if policymakers ease.
The US Dollar Index (DXY) is temporarily stalling its gain as the US session begins. Sparking a turnaround and some selling pressure in the Greenback. In a larger sense, the Greenback is benefiting from a shift in the narrative surrounding the rate differential. Which has increased in favor of the US Dollar against other currencies since last week. Additional The tailwind comes from Israel. Which has sworn not to respond against Iran despite diplomatic efforts to reduce tensions in the Middle East, bringing the region back to the verge of war.
Markets are anticipating a shift in posture from Fed Chairman Powell on Tuesday.
On the economic front, the data points will not have a significant impact on the US dollar on Tuesday. The main event consists of three Federal Reserve (Fed) speakers. The most notable being Fed Chairman Jerome Powell speech might be the game changer. As any change in phrasing on rate cut expectations or outlook from the Fed Chairman could either spark another leap higher for the Greenback or initiate a significant reversal.
Daily Market movers: Markets expect Powell to say something.
At 12:30 GMT, some housing data The following is scheduled for release in March:
Building permits are likely to fall to 1.514 million from 1.524 million.
Housing starts are forecast to fall to 1.48 million from 1.521 million.
At 12:55 GMT, the year-over-year Redbook Index for the week ending April 12 will be published. The index was at 5.4% for the week of April 5.
At 13:15 GMT, the Fed will release the March Capacity and Industrial Production numbers:
Capacity utilization is expected to rise to 78.5% from 78.3%.
Industrial production is expected to rise to 0.4% from 0.1%.
A swarm of Fed speakers will attempt to steer the markets:
At 13:00 GMT, Federal Reserve Vice Chair Philip Jefferson is scheduled to give a keynote speech at the International Research Forum. on monetary policy in Washington, D.C.
Around 16:30 GMT, Federal Reserve Bank of New York President John Williams will host a discussion at the Economy Club of New York.
Federal Reserve Chair Jerome Powell will participate in a discussion panel with Bank of Canada governor Tiff Macklem at the Washington Forum about 17:15 GMT.
US Dollar shares are turning green, while European equities remain in the red.
US shares are turning green, while European equities remain in the red. In just 15 minutes, US market futures have jumped from red to green, with the Dow Jones leading the way, up about 0.60% ahead of the US opening bell.
According to the CME Group’s FedWatch Tool, expectations for a Fed pause at the May meeting are at 98.2%, while chances of The current rate cut is 1.8%. Although there are calls for rate hikes, they are not yet represented in the CME futures, which might lead to significant more US Dollar strength once the likelihood is factored in.
The benchmark 10-year US Treasury Note yields approximately 4.64%. A further upward movement could even allude to anticipation of another rate hike before the easing cycle begins.
