• The DXY trades around the 103 zone on Monday, trying to extend Friday's rebound amid volatile market conditions.
• A report suggesting Trump may pause tariffs briefly lifted sentiment, but a sharp White House denial reversed optimism.
• Resistance sits near 103.75, while 102.50 serves as key support amid mixed technical signals.

The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is trading near the 103 area on Monday after rebounding on Friday. Market volatility intensified as headlines emerged suggesting a temporary suspension of tariffs by the United States (US), though these were quickly refuted by the White House. While equities and commodities came under pressure, the DXY held onto modest gains. Technical signals remain mixed, with the MACD showing a buy but key moving averages flashing bearish signs.

Daily digest market movers: US Dollar jolted by tariff rumor denial

• Markets initially rallied on reports that the US was considering a 90-day tariff pause for all nations except China, as revealed by National Economic Council (NEC) Director Kevin Hassett.
• The optimism was short-lived after a White House spokesperson dismissed the report as untrue, reigniting safe-haven flows and dragging stocks lower.
• US indexes reversed earlier gains; the Dow dropped over 1.5%, while the S&P 500 and Nasdaq also slipped into red territory by the afternoon.
• Attention is shifting toward Thursday's Consumer Price Index (CPI) data for March, which could reflect the early effects of current trade policies.
• The White House has touted progress on curbing inflation, particularly in food and energy, but markets remain cautious ahead of the data release.

Technical analysis

The US Dollar Index (DXY) attempts to build on Friday's bounce, hovering near the top of its daily range. The Moving Average Convergence Divergence (MACD) signals a potential upside push, while the Relative Strength Index (RSI) at 42.80 remains neutral. Despite this, the 20-day, 100-day, and 200-day Simple Moving Averages (SMA), along with the 10-day Exponential Moving Average (EMA), continue to signal downside risk. Momentum indicators are split, with the 10-period Momentum suggesting a buy, but others like the Williams Percent Range indicating neutrality. Resistance levels are seen at 103.52, 103.72, and 103.75, while immediate support is located at 102.51. A rejection at the 103.18 zone last week reinforces that area as a pivotal point to watch.