- The US dollar is calm with entrepreneurs assessing Pivotal Week in advance of US data.
- On the weekend, the Trump administration again spoke to China on Trade, China removed US claims.
- The US Dollar Index remains located below the 100.00 level of rotation and looking in the direction.
The US Dollar Index (DXY), which monitors the US dollar (USD) performance against six major currencies, will not go this Monday while living near 100.00-marker. This weekend, United States Treasury Secretary Scott Bessent said trade negotiations in some Asian countries were carried out, while United States Agriculture Secretary Brooke Rollins added that the Trump administration is having a “day -to -day conversation” with China at the tariffs.
However, China said on Monday that it was not involved in US trade negotiations. The country reiterated that there were no winners in a tariff trade war and that the US should communicate based on one another, Bloomberg reported. In a spillover effect, retailers Temu and Shein raised prices by nearly 300% for US consumers on its websites, Reuters reported.
In front of the economic calendar, a very packed week was preceded. Data is likely to help entrepreneurs assess whether the Federal Reserve (FED) will deliver a interest rate rate at the upcoming policy meeting on May 7. This week's main attention is on Wednesday, with the first US reading Gross Domestic Product (GDP) for the first quarter. Next, on Friday, the US job report for April-which includes all that matters Nonfarm Payrolls As – the main event to close the week.
Daily -Sun Digest Market Movers: Slow start on Monday
- The Trump administration over the weekend has repeatedly commented that it was talking to China in a trade deal. China said on Monday it was certainly not in any trading conversations, Bloomberg reports.
- The US economic calendar will be light on Monday. At 14:30 GMT, the Dallas Fed Manufacturing Business Index for April should be. No forecast available to the previous reading at -16.3.
- No scheduled Federal Reserve speakers this week as the Blackout season began early at the Federal Open Market Committee (FOMC) meeting and decision rate on May 7.
- Equalities are trading marginally higher this Monday. The only outlier was the Japanese topix, which closed about 1% and older. European equities are widely positive, while US equality has seen a gentle positive opening on the bell.
- The CME Fedwatch's tool shows the chance of an interest rate cut by the Federal Reserve at the May meeting at 8.9% against a 91.1% possibility of no change. The June meeting was around a 61.9% chance of a cutting rate.
- The US 10-year-old trades around 4.27%, seeking direction at the Sunday's calm start.
US Dollar Index Technical Analysis: Wait for Breakouts
The US Dollar index (DXY) will not go anywhere as entrepreneurs keep their powder dry for US data later this week and amid continuous suspicion if US and China are in talks about trade.
Upside down, DXY's first resistance came to 100.22, supporting DXY back in September 2024, with a break back above the 100.00 level of cycle as a bullish signal. A recovery firm was a return to 101.90, which acted as a pivotal level throughout December 2023 and again as a base for the reverse head-and-and-shoulder summer of the summer of 2024.
On the other hand, the support of 97.73 can be quickly diagnosed with any large bearish headline. In addition, a relatively thin technical support enters 96.94 before viewing the lower level of the new price range. It is at 95.25 and 94.56, which means fresh lows that have not been seen since 2022.
US Dollar Index: Daily -Taral chart
GDP FAQs
A country's gross domestic product (GDP) measures its economic growth rate over a given time period, usually a quarter. The most reliable numbers were those comparing GDP to the previous quarter eg with Q2 of 2023 vs Q1 of 2023, or the same period last year, e.g. Q2 of 2023 compared to Q2 of 2022. The annual quarterly GDP figure releases the quarter growth rate if it is similar for the rest of the year. These can be misleading, however, if temporary shocks affect growth in a quarter but are not likely to last yearly – as happened in the first quarter of 2020 in the outbreak of covid pandemic, when the growth drops.
A higher GDP result is usually positive for a country's money because it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as to attract higher foreign investment. With the same token, when the GDP falls it is usually negative for money. When an economy grows people tend to spend more, leading to inflation. The central bank of the country then has to put interest rates to combat inflation with the impact of attracting more capital flows from global investors, thus helping the local currency to appreciate.
When an economy grows and GDP rises, people tend to spend more leading to inflation. The central bank of the country then has to put interest rates to combat inflation. Higher interest rates are negative for gold because they increase the cost of handling gold compared to putting money into a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for gold price.
