DXY: Dollar Index Floats Sideways Near 106 Ahead of Interest Rate Decision, Jobs Data

Currency gauge was slow to start a packed week with a Federal Reserve decision, Jay Powell speech, and nonfarm payrolls ahead.

• The dollar index DXY made a slow start to a packed week as investors were getting ready to get carried away. The currency gauge was gravitating toward the 106.00 handle after logging a losing week, but looking into a flurry of events this week. Two key reports are headlining the days ahead — the Federal Reserve’s interest rate decision on Wednesday and the nonfarm payrolls on Friday.
• The Fed’s rate decision is likely to keep borrowing costs steady at a 24-year high of 5.5%. But this is largely baked into the market already. More importantly, investors will be holding their breath for Jay Powell’s conference after the rate decision. In his remarks, the Fed boss is likely to lay out hints whether there will be any rate cuts in the coming months. Recent data suggests a complicated situation.
• Nonfarm payrolls are coming to wreck (or not?) your portfolio on Friday. Money managers anticipate a fairly hot jobs number of 243,000 for April, lower than the scorching 303,000 in March. Volatility is expected to pick up as we approach the milestone events. And with that, the first month of the second quarter is just about in the rearview mirror.