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Tuesday saw no relief for the US Dollar as it continued to face significant downward pressure, with its value plunging to levels not seen since early October. The Greenback’s decline comes amid mounting concerns over tariffs and fears of a potential US economic slowdown.
On Wednesday, March 12, the US Dollar Index (DXY) hit fresh multi-month lows, hovering around 103.20. This drop coincided with diminishing yields and persistent speculation regarding a likely economic deceleration in the United States. Market attention is now focused on the release of the Inflation Rate, alongside key data such as MBA Mortgage Applications and the weekly report by the EIA on US crude oil inventories.
**Euro and Pound Surge Amid Greenback Weakness**
The euro (EUR/USD) extended its rally, soaring beyond the 1.0900 threshold to reach four-month highs. With an empty domestic economic calendar, markets are closely watching for insights from European Central Bank officials, including Lagarde, Nagel, and Lane.
Similarly, the British pound (GBP/USD) climbed to nearly 1.2970, flirting with fresh highs amidst the broad-based US Dollar sell-off. Traders are now looking ahead to the upcoming UK RICS House Price Balance report, scheduled for release on March 13.
**Mixed Performance in Other Currency Pairs**
The USD/JPY pair experienced notable volatility, touching mid-146.00 lows before recovering slightly. The combination of US Dollar weakness and falling yields in both the US and Japan fueled this movement. Meanwhile, attention has turned to Japan’s Producer Prices and the BSI Large Manufacturing Index as key indicators.
The Australian dollar (AUD/USD) rebounded decisively, breaking past the 0.6300 mark. This recovery ended a three-day losing streak, supported by the Greenback’s decline. Investors are now awaiting the final figures for Building Permits and Private House Approvals, as well as comments from the Reserve Bank of Australia’s Jones.
**Commodities Rebound Amid US Dollar Weakness**
In commodity markets, WTI crude oil prices regained traction, surpassing $67 per barrel as selling pressure on the Greenback intensified. Similarly, gold prices surged back above the $2,920-per-ounce level, driven by heightened concerns over the US economy. Silver followed suit, rallying to three-week highs near $33 per ounce and reversing its recent losses.
