US Dollar Index Fails To Hold On Positive Market Sentiment

The US dollar index (DXY) has witnessed a serious plunge near 99.40 after its failed attempts of touching the psychological figure of 100.00. Souring market sentiment on obscurity over the progress of the Russia-Ukraine peace talks.

Talks were providing a cushion to the strong dollar, but risk sentiment turned active after Moscow withdraw some of its troops from northern Ukraine and Kyiv. The initial step towards ceasefire has cheered traders, so, risk-sensitive assets have witnessed stellar demand from investors.

On the Ukraine front, the administration has announced to adopt a neutral status but with a stipulation of international guarantees that it would be protected from attack and proposed not joining alliances or hosting bases of foreign troops.

The US Conference Board reported Consumer Confidence at 107.2 in March from 105.7, reported a month earlier and a little above the expected 107.0 reading. This showed that the confidence of US individuals in the US economic activities is accelarating.

The JOLTS Jobs Opening landed at 11.266M, slightly higher than the previous print of 11.236M but modestly higher than the estimation of 11M.

Key events this week will include ADP Employment Change, Gross Domestic Product (GDP) Annualized, Core Personal Consumption Expenditure, Initial Jobless Claims, Nonfarm Payrolls (NFP), Unemployment Rate, and ISM Manufacturing PMI.