The USD DXY Index Down Again Today as Jobless Claims Jump

The US Dollar turned quite bullish during most of March, but the DXY index has reversed lower this week, going through a sharp retreat which continues today. The Unemployment Claims report didn’t help much since it showed a jump in the number of claims last week, however the DXY index has stopped at moving averages now, so this might be the end of the USD retreat before the NFP report tomorrow.

USD Index DXY Chart Daily – MAs Are Holding As Support for Now

The USD index climbed above the moving averages last month as buyers remained in charge, with the odds of a FED interest rate cut in June declining. It peaked above 105 points on Monday, but reversed on Tuesday and yesterdaythe decline picked up pace. Today we saw further declines in the USD pairs but the DXY index stalled at MAs which are acting as support, as traders await tomorrow’s non-farm payrolls (NFP).

Chinese Markets Closed for the Day

It’s possible that China’s absence from the market due to the holiday could have contributed to decreased trading activity, potentially impacting Gold prices and Treasury yields. However, attributing specific market movements solely to China’s actions would be speculative without concrete evidence.

Additionally, while China’s actions in the Gold and Treasury markets may have implications for global financial markets, it’s essential to consider the broader context and dynamics at play. Geopolitical factors can certainly influence investor behavior and market sentiment, but their direct impact on market movements can be complex and multifaceted.

Initial and continuing jobless claims for the week ending March 30, 2024

• US initial unemployment claims: 221K, compared to the estimated 214K.
• The previous week’s unemployment claims were 210K.
• Continuing claims: 1.791 million, lower than the expected 1.813 million.

The reported initial unemployment claims shows a considerable jump and markets are trying to read into tomorrow’s NFP with these numbers.