US dollar nosedives after Powell’s testimony, ADP data

The US Dollar Index (DXY) is experiencing losses following the soft print for January’s JOLTs Job Quits and Job Openings as well as the weak ADP Employment Change report for February. The Dollar Index (DXY) is 0.45% down, trading at 103.313 at the time of writing.

Federal Reserve Chair Jerome Powell confirmed that the US central bank is not ready to start cutting rates, and the consensus is that the first cut will likely come in June.

JOLTs Job Openings for January were 8.863M, slightly below the expected 8.9M but nearly identical to December’s figure of 8.889M. ADP Employment Change for February showed an actual increase of 140K jobs but fell below the forecast 150K growth.

Powell expressed confidence in the bank’s confidence in starting cutting with more data. US Treasury bond yields continue to decline, with the 2-year yield at 4.52%, the 5-year yield at 4.08%, and the 10-year yield at 4.09%. Markets will monitor weekly Jobless Claims figures and Nonfarm Payroll data from February on Thursday and Friday.


The short-term technical outlook for DXY appears predominantly bearish, with the selling momentum seemingly overriding the buying momentum.