The U.S. dollar index (DXY00) fell by 0.07% on Wednesday, influenced by a rally in the S&P 500 to a new all-time high and easing geopolitical tensions, particularly a potential two-week extension of the U.S.-Iran ceasefire for diplomacy. Cleveland Fed President Beth Hammack’s comments indicating a Fed pause on rate hikes offered some support to the dollar, despite mixed economic data.
Key economic indicators included the U.S. April Empire manufacturing survey rising to a five-month high of 11.0, surpassing expectations of 0.0, while the NAHB housing market index dropped to a seven-month low of 34, below the anticipated 37. Additionally, Japan reported a 24.7% year-over-year increase in core machine orders, marking the largest growth in 15 years.
The Eurozone saw February industrial production increase by 0.4% month-over-month, exceeding the 0.3% forecast, further bolstering the euro. In precious metals, COMEX gold fell by $26.50, with safe-haven demand weakened following the S&P 500 rally, while silver prices saw a slight increase, supported by ongoing global supply deficits.
