US DOLLAR FALLS TO THREE-WEEK LOW AS MARKET SENTIMENT IMPROVES
- The US Dollar trades deep in the red after the publication of the Fed Minutes.
- Market sentiment improves after Nvidia earnings beat and a fresh all-time high for the Japanese Nikkei.
- The US Dollar Index falls sharply below 104.00, and bears try to break the heavy-weight 200-day SMA.
The US Dollar (USD) is facing a dropkick moment on Thursday after a string of events accelerated a downside move in the US Dollar Index (DXY) overnight. The first decline came on the back of the US Federal Reserve releasing the Minutes of its January meeting. The decrease came even though several participants in the Federal Open Market Committee (FOMC) expressed their concerns about cutting rates too quickly, having learned their lessons from the former policy mistake made in the 1980s by Fed Chairman Paul Volcker. With the DXY hammered, a second selling wave for the Greenback took place after Nvidia posted jawbreaking earnings, spilling the upbeat market mood into Asia, where the Japanese Nikkei hit all-time highs.
On the economic data front, a very chunky calendar ahead on Thursday with some leading indicators. Apart from the usual market-moving Initial Jobless Claims, the Purchasing Managers Index (PMI) numbers for February are due as well. Throw in no less than four Fed speakers and volatility looks to be guaranteed
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