DXY Futures Take A Breather At Around 104.48; All Eyes On ADP Data

Published on Apr 03, 2024 11:00

The dollar index futures are taking a breather on Wednesday morning in Asia from recent high levels near 105 mark, although the index continues to hold close to annual high of 104.85 so far this year. US benchmark treasury yields however still hold high at 4.36% that could drag greenback higher. Currently, the dollar index futures that measure the greenback against a basket of currencies is quoting at 104.48, lower by 0.08% on the day. Continued resilience in the US economy as reinstated by JOTS job openings data that came in at 8.75 million and surpassed 8.74 million in January coupled with US factory orders that climbed more than expected 1.4% in February, recovering from a 3.4% decline in January is reducing the probability of near term Federal rate cuts. This is keeping the greenback at elevated levels. Meanwhile, all eyes are now on ADP non farms data and Powell speech due this week that could determine direction for the US dollar going forward. Fed official Daly reportedly said the three rate cuts penciled in by Fed officials last month are a reasonable expectation, though there�s no urgency to make adjustments at the moment. Federal Reserve Bank of Cleveland President Loretta Mester also said she wants to see more evidence that inflation is headed lower before cutting interest rates.