US Dollar Holds Firm Amid Economic Reports
The US Dollar (USD) maintained its upward momentum on Monday, closing higher for the fourth consecutive session. Early Tuesday, the USD Index remained comfortably above 104.00 as investors awaited the US CB Consumer Confidence Index report for February. Additionally, the US economic calendar includes New Home Sales data and regional manufacturing surveys, alongside anticipated remarks from central bank officials.
USD Performance Against Major Currencies
The US Dollar exhibited mixed performance against key global currencies, with the most significant gain observed against the Japanese Yen (JPY). Below is a summary of the USD’s movement in the forex market this week:
| Currency Pair | % Change |
|---|---|
| USD/JPY | +0.95% |
| USD/EUR | +0.31% |
| USD/GBP | +0.09% |
| USD/CHF | +0.20% |
| USD/CAD | -0.20% |
| USD/AUD | -0.10% |
| USD/NZD | +0.34% |
US Economic Indicators and Market Trends
Economic data from Monday revealed that the private sector in the US continued to expand, with the S&P Global Composite PMI rising to 53.5 in March, up from 51.6. Meanwhile, President Donald Trump reaffirmed plans to impose additional tariffs on automobiles, aluminum, and pharmaceuticals. Wall Street reacted positively, with major indexes recording strong gains amid an improved risk appetite.
Currency Market Movements
- USD/JPY: The pair surged to its highest level since early March, reaching near 151.00, before pulling back toward 105.50 in the European session. Bank of Japan Governor Kazuo Ueda stated that further considerations are needed regarding the central bank’s ETF holdings.
- EUR/USD: After initial gains on Monday, the pair reversed course and closed slightly lower. On Tuesday, it remained stable just below the 1.0800 mark as markets awaited Germany’s business sentiment data.
- GBP/USD: The British Pound lost momentum against the USD on Monday, with the pair trading around 1.2900 early Tuesday.
Gold Prices Under Pressure
Gold (XAU/USD) faced a third consecutive day of losses as risk appetite increased. On Tuesday, gold remained relatively stable, hovering above the $3,000 level.
Conclusion
As the market anticipates the release of key US economic data and central bank remarks, the US Dollar continues to hold a strong position. Investors will closely watch consumer confidence figures and trade policies for further market direction.
