Fresh fears of banking fallouts and US default allowed the greenback’s gauge versus the six major currencies to print the first daily gains in four the previous day. However, the cautious mood ahead of today’s US Durable Goods Orders for March and major central banks’ efforts to restore the market’s confidence seems to challenge the US dollar bulls of late.
On Tuesday, the First Republic Bank’s disappointing earnings reports joined the executives’ resistance in taking questions and no earnings guidance to trigger a fresh wave of banking jitters. Even so, the major central banks tried to restore market confidence by curtailing the US Dollar operations initiated during the first wave of the banking crisis. “The world's top central banks are cutting the frequency of their dollar liquidity operations with the U.S.
Apart from the banking crisis, fears of US debt ceiling expiration also weigh on the risk appetite and allow the DXY to remain firmer.
It’s worth noting that the mixed US data failed to prod the DXY buyers. That said, US Conference Board's Consumer Confidence Index edged lower to 101.3 for April, versus 104.0 prior and Additional details of the publication stated that the Present Situation Index ticked up to 151.1 during the said month from 148.9 prior whereas the Consumer Expectations Index dropped to 68.1 from 74 previous readings. Further, the one-year consumer inflation expectations eased to 6.2% in April from 6.
for the first quarter . Should the scheduled data offer a downbeat print, versus 0.8% expected and -1.0% prior, the US Dollar Index may consolidate recent gains.