What is causing the US dollar to hold the bulls?
Alphabet (NASDAQ: GOOGL) Inc. and Microsoft Corp (NASDAQ: MSFT) lost 3.4% and 2.9%, respectively, ahead of their earnings after market close. This pressure on the mega-caps caused a 3.2% loss in NASDAQ. And while about a third of the S&P 500 companies are set to report results this week, this index lost 2.1% in the first trading hours of Tuesday.
The market risk with Germany's new approach and more NATO and US assistance to Ukraine increases as Russia considers that indirect declaration of war. On top of them, COVID concerns in China brought the fears about the supply chain, as still many factories are closed, and restrictions continue. And now, while we are waiting for more earnings, the market can suffer badly if results become negative.
According to Refinitiv data, 134 companies listed in the S&P 500 reported earnings that 80.6% topped analysts' profit expectations on the earnings front.
Today we had vital economic data, including Durable goods orders. Durable goods orders increased just 0.8% in March, less than 1.0% expected. However, this decline was primarily because of a sharply falling in aircraft bookings. According to the reports, Civilian aircraft orders decreased by 9.9%, and defense aircraft orders tumbled by 25.6%. Excluding aircraft orders, orders are rising across all core categories. Also, US consumer confidence eased in April on the data front, same as New Home Sales numbers.
Considering all fears and concerns and economic data lifted the US dollar index above the 102 mark, up to 102.30. It is the first time since March 2020 that we can see the index above 102 Mark. Technically and as we can see in the bellow weekly chart, it is in a clear uptrend. 20 weekly moving average sits at 97.70. As you can see in the chart below, it also seems to be crucial support for this index. Technical indicators in all significant timeframes remain bullish.
