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The US dollar index is below the 100 mark, will the United States escalate sanctions against Russia?
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Analysis]: The US dollar index is below the 100 mark, will the United States escalate sanctions against Russia?". Hope it will be helpful to you! The original content is as follows:
On April 28, in the early trading of Asian market on Monday and Friday, Beijing time, the US dollar index hovered around 99.59. The dollar index rose last Friday, driven by hopes of easing global trade tensions, and eventually closed up 0.325% to 99.61, ending a four-week decline. U.S. Treasury yields continued to fall, with the benchmark 10-year U.S. Treasury yields closed at 4.24%; and the two-year U.S. Treasury yields, which are more sensitive to monetary policy, closed at 3.744%. Given the cooldown in risk aversion sentiment and the strong dollar, spot gold fell, hitting a low of $3,265.2/ounce, and finally closed down 0.9% at $3,318.2/ounce, the first weekly closing negative since the announcement of reciprocal tariffs. Spot silver fell below the 33 mark again during the session, rebounding at the end of the session, and finally closed down 1.46% at $33.08 per ounce. As uncertainty in tariff negotiations remained, international crude oil rose slightly for the second consecutive day. WTI crude oil once again hit the 63 mark and finally closed up 0.57% to $62.98 per barrel; Brent crude oil closed up 0.38% to $65.91 per barrel.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovers around 99.59. Fundamentals may be the main driver of the dollar in the near future, especially the shift in attitudes of US President Trump. U.S. Treasury Secretary Bescent xm-forex.commented that trade tensions with other economies could ease, adding that tariffs would be significantly lowered if a trade deal was reached with other economies, which was also confirmed by Trump. In addition, the U.S. president no longer attacks Fed Chairman Powell, which eases pressure on the Fed's interest rate cut, which may make it face the U.S.Meta plays a supporting role. Technically, if the U.S. dollar index returns below the 99.50 level, it will move towards the nearest support range of 98.80–99.00.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
On the Asian session on Monday, gold trading around 3312.16. In the early Asian market, spot gold fell sharply in the short term. Bloomberg analyzed on Monday that gold prices fell further from last week's historical highs because there were signs that the "explosive rise" of gold prices may be too fierce and too fast, and traders closed their positions one after another. Meanwhile, the latest data from the U.S. xm-forex.commodity Futures Trading xm-forex.commission (CFTC) shows hedge fund managers cut their net long positions in gold futures and options to their lowest levels in 14 months.
2) Analysis of crude oil market trends
On the Asian session on Monday, crude oil trading was around 62.88. Crude oil fell sharply last week, as traders struggled with supply-driven adverse factors and ongoing geopolitical uncertainty. Brent crude closed down while WTI fell as potential new supply and fragile global demand expectations kept buyers cautious.
Forex market trading reminder on April 28, 2025
①To be determined Canada holds a federal election
②10:00 State Information Office holds a press conference
③18:00 UK CBI retail sales difference in April
④22:30 US Dallas Fed Business Activities Index
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