The US dollar index (DXY) rose by 0.23% as heightened demand for liquidity accompanied a slump in stocks and increased inflation expectations due to higher crude oil prices. This strengthened the dollar further after the Conference Board’s April consumer confidence index unexpectedly increased to 92.8, the highest level in four months, surpassing expectations of a decline to 89.0.
Amid rising tensions between the US and Iran over control of the Strait of Hormuz, demand for the dollar as a safe-haven asset has intensified. In addition, the February S&P composite-20 home price index rose by 0.90% year-over-year, falling short of the anticipated 1.12%, marking the slowest pace of increase in over 2.5 years.
The Bank of Japan (BOJ) kept its policy rate unchanged at 0.75%, with indications this may change in June as three members voted for a rate hike. Japan’s unemployment rate rose unexpectedly to 2.7%, against expectations of remaining at 2.6%, while machine tool orders were revised down. Meanwhile, gold and silver prices fell sharply, pressured by a stronger dollar and higher global bond yields.
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