Overall Sentiment for US Economy from January to May 2024

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The period from January to May 2024 has been marked by significant bearish sentiment due to multiple geopolitical events. The escalation of conflicts in Ukraine, increased US-China trade tensions, disruptions in the Red Sea, and heightened hostilities in the Middle East have collectively contributed to market instability. These events led to increased energy prices, supply chain disruptions, and heightened global volatility, which pressured the US Dollar Index.

The overall bearish impact on the dollar was driven primarily by inflationary pressures from higher oil prices and increased geopolitical risks, reducing demand for the dollar as a safe haven. Large institutions had to adjust their portfolios and manage risks strategically to navigate the volatile environment.

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Nota

January to February 2024
Ukraine Conflict Escalation (Jan 15): The conflict drove up energy prices and caused volatility in European markets, leading to a bearish impact on the DXY.

February to March 2024
US-China Tech Restrictions (Feb 10): Trade tensions caused significant volatility in tech stocks and global supply chains, negatively impacting the dollar.

March to April 2024
Red Sea Shipping Disruptions (Mar 25): Attacks on shipping routes led to increased transportation costs and fluctuations in global trade, pressuring the dollar.

April 2024
Israel-Iran Escalation (Apr 5): Military strikes disrupted oil supply routes, causing oil prices to surge and gold to rise, adding inflationary pressures and weakening the dollar.

May 2024
Middle East Hostilities (May 1): Ongoing conflicts in Gaza and Southern Lebanon drove oil prices higher and increased global market volatility, further weakening the dollar.