. Market Focus: US Dollar Stability - Capital Street FX

Market Focus: US Dollar Stability

09 Apr 2024

The US Dollar is hovering around the 104.00 mark, experiencing a slight easing.

  • The US Dollar remains stable and maintains its sideways movement following a subdued trading session on Monday.
  • The US economic agenda includes Business Optimism figures.
  • Despite somewhat dovish remarks from both Fed’s Goolsbee and Kashkari, the US Dollar Index remains above 104.00.

The US Dollar (USD) maintains stability following a sluggish start to the trading week. On Monday, the Greenback experienced minimal movement and only saw a slight decline after Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee commented on the job market, suggesting it is robust but not as robust as indicated by recent US Jobs Report. This led to a modest retreat in the Greenback overnight, with Bullard even suggesting that three rate cuts are the ‘base case’ for the Fed.

In terms of economic data, both the National Federation of Independent Business (NFIB) and the TechnoMetrica Institute of Policy and Politics (TIPP) are poised to unveil their latest Business Optimism figures, serving as leading indicators. The optimism levels of small businesses often serve as a reliable gauge of the US economy’s health and could potentially alter the prevailing stance of no imminent slowdown, which is gradually affecting market sentiments towards the US economy.

During the night, Minneapolis Fed President Neel Kashkari gave a brief speech, highlighting that inflation is expected to decline and indicating that while the labor market remains tight, it is no longer as robust as before, as reported by Bloomberg.

The benchmark 10-year US Treasury Note is currently trading at approximately 4.42%, having surged more than 20 basis points in the span of just one week.