{"id":18910,"date":"2025-03-21T07:35:40","date_gmt":"2025-03-21T07:35:40","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=18910"},"modified":"2025-03-21T07:35:40","modified_gmt":"2025-03-21T07:35:40","slug":"usdx-surges-fed-signals-no-rush-for-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/usdx-surges-fed-signals-no-rush-for-rate-cuts\/","title":{"rendered":"USDX Surges, Fed Signals No Rush for Rate Cuts"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/03\/image_fx_-2025-03-21T153439.500-1-1024x559.png\" alt=\"\" class=\"wp-image-18912\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USDX rises 0.21% to 104.01 after its strongest daily performance in three weeks.<\/li>\n\n\n\n<li>Fed holds rates, signals two cuts later in the year, but warns against premature easing.<\/li>\n\n\n\n<li>USD\/JPY climbs to 149.40 as the yen weakens post-BOJ rate decision.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">USDX Gains Momentum as Fed Holds Rates, Signals Caution<\/h2>\n\n\n\n<p>The <strong>U.S. dollar index (USDX)<\/strong> climbed to <strong>104.01<\/strong>, extending its <strong>0.36% rally from Thursday<\/strong>, following <strong>the Federal Reserve\u2019s decision to keep interest rates steady<\/strong> while signaling <strong>no urgency to cut rates<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">US dollar stands tall after Fed signals no rush to cut rates <a href=\"https:\/\/t.co\/yoBkrVggcf\">https:\/\/t.co\/yoBkrVggcf<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1902913948287967345?ref_src=twsrc%5Etfw\">March 21, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>This marked the <strong>greenback\u2019s best single-day performance in three weeks<\/strong>, as markets recalibrated expectations amid <strong><a href=\"https:\/\/t.co\/ux4cKhQU5w\">Trump\u2019s aggressive trade tariff policies<\/a><\/strong> and the Fed\u2019s cautious economic outlook.<\/p>\n\n\n\n<p>Fed Chair <strong>Jerome Powell<\/strong> reaffirmed that policymakers are <em>\u201c<\/em><em><a href=\"https:\/\/t.co\/6i23N3OElb\">not in any hurry to move\u201d<\/a><\/em> on rate cuts, citing <strong>heightened economic uncertainty from trade tensions<\/strong> and the need to monitor incoming data. The Fed\u2019s updated projections maintained <strong><a href=\"https:\/\/www.reuters.com\/markets\/rates-bonds\/fed-policymakers-project-two-rate-cuts-this-year-some-see-fewer-2025-03-19\/\">two quarter-point rate cuts<\/a><\/strong><strong> for later this year<\/strong>, aligning with previous forecasts. However, with <strong>reciprocal tariff announcements expected on April 2<\/strong>, investors are adjusting their positioning in the <strong>FX and bond markets<\/strong> to hedge against potential volatility.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The <strong>US Dollar Index (USDX)<\/strong> shows a strong <strong>bullish momentum<\/strong>, climbing from a recent low of <strong>102.964<\/strong> to a session high of <strong>103.779<\/strong>. The chart reflects an <strong>uptrend<\/strong>, with price action consistently riding above the <strong>moving averages (MA 5,10,30)<\/strong>, suggesting sustained buying pressure. The <strong>MACD indicator<\/strong> also shows a bullish crossover, confirming positive momentum.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/03\/image-20-1-1024x446.jpeg\" alt=\"\" class=\"wp-image-18911\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDX rally nears key resistance at 103.800, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p><strong>Key resistance levels<\/strong> are forming around <strong>103.800<\/strong>, which is acting as a ceiling for further gains. A decisive break above this level could push USDX toward <strong>104.000 and beyond<\/strong>. On the downside, <strong>support near 103.400<\/strong> could prevent deeper pullbacks. <strong>Traders should watch for a breakout or potential consolidation<\/strong> as the market assesses economic data and Federal Reserve policy cues.<\/p>\n\n\n\n<p>If <strong>tariff concerns escalate<\/strong> and the <strong>Fed remains firm on delaying rate cuts<\/strong>, the <strong>dollar could extend gains toward 104.50<\/strong>. However, <strong>any signs of economic slowdown<\/strong> or <strong>weaker inflation data<\/strong> could <strong>cap upside momentum<\/strong>, prompting a <strong>retracement toward 103.40<\/strong>.<\/p>\n\n\n\n<p>For now, <strong>dollar bulls remain in control<\/strong>, as the <strong>USDX holds above key support levels<\/strong>, reinforcing <strong>near-term strength in the greenback.<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>USDX rises to 104.01 as Fed holds rates. Traders eye Trump&#8217;s tariffs and key resistance at 104.50. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":19184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,31],"class_list":["post-18910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dollar","tag-indices"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/18910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=18910"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/18910\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media\/19184"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=18910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=18910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=18910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}