- The US Dollar remains flat on Tuesday following a three-year low reached on Monday.
- Markets are preparing for a series of Fed speeches and Tesla's earnings report after the bell.
- The US Dollar Index stays below the 100.00 level as President Trump continues his attacks on Fed Chair Jerome Powell.
The US Dollar Index (DXY), which tracks the US Dollar's performance against six major currencies, remains broadly flat on Tuesday near a three-year low, consolidating losses from Monday. The US Dollar took a hit during Asian trading hours, with European and US markets trading on limited capacity due to the Easter Monday holiday. President Donald Trump has intensified his focus on the Federal Reserve, targeting Fed Chairman Jerome Powell, calling him a “major loser” for not lowering interest rates and exploring ways to remove Powell, further pressuring the Greenback.
On the economic front, market participants are closely watching the preliminary Purchasing Managers Index (PMI) data for April, set for release on Wednesday, and the Durable Goods orders report due Thursday. A busy day ahead includes a slew of Federal Reserve speakers, with the less influential Richmond Fed Manufacturing data for April also being published.
In US equity markets, attention will turn to Tesla’s (TSLA) earnings call after the US market close, where rumors suggest CEO Elon Musk might announce his departure date from the Department of Government Efficiency (DOGE), according to NBC reports.
Daily Digest Market Movers: Fed Speakers and Economic Data
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13:30 GMT: Patrick Harker, President of the Federal Reserve Bank of Philadelphia, participates in a seminar on economic development at the University of Pennsylvania, discussing regional growth and financial inclusion.
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14:00 GMT: Fed Vice Chair Philip Jefferson delivers a speech on “Economic Mobility and the Dual Mandate” at the Federal Reserve Bank of Philadelphia Economic Mobility Summit. Simultaneously, the Richmond Fed Manufacturing Index for April is expected to show further contraction, with expectations of a reading of -6, down from -4 in the previous reading.
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17:40 GMT: Minneapolis Fed President Neel Kashkari speaks at the US Chamber of Commerce Global Summit in Washington DC, followed by closing remarks from Federal Reserve Bank Governor Adriana Kugler at 22:00 GMT, discussing “Transmission of Monetary Policy” at the Heller-Hurwicz Economics Institute 2025 Roundtable in Minneapolis.
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After US market close: All eyes will shift to Tesla’s earnings report, with Musk possibly announcing his departure date from DOGE.
- In equity markets, European stocks are slightly lower, while US equities gain around 1% as they attempt to recover from Monday’s losses. According to the CME FedWatch tool, markets place a 10.4% chance of an interest rate cut by the Federal Reserve at the May meeting, while 89.6% expect no changes. The June meeting sees around a 62% chance for a rate cut. The US 10-year yields trade near 4.41%, reflecting recent substantial bond sell-offs.
US Dollar Index Technical Analysis: Testing the Waters
The US Dollar Index (DXY) has slipped below the 100.00 mark, consolidating Monday’s losses on Tuesday, with the Relative Strength Index (RSI) indicating oversold conditions. Although downside potential appears limited for now, a technical bounce is expected before the DXY could fall further.
On the upside, resistance is at 99.58, where any recovery attempts may face strong rejection. If the dollar bulls reassert themselves, a break above 100.00 would signal bullish momentum, with a return to 101.90, the head-and-shoulders baseline from 2023, as a key target.
On the downside, the low at 97.73 remains a critical support level, and further declines could push the index toward 96.94, followed by 95.25 and 94.56, marking fresh lows not seen since 2022.
