Market Drivers – US Session, March 14

The US dollar rallied this week, fueled by positive economic data. Inflation data and the recent labour market conditions in the United States pushed the USD Index to new multi-day highs above 103.445.

The USD Index (DXY): Strong gains continue, breaking past 103.00 on robust inflation and labor data. Keep an eye on Thursday’s Industrial Production and preliminary Michigan Consumer Sentiment figures.

EUR/USD: Risk aversion in the market sent EUR/USD tumbling below key support at 1.0900, reaching new weekly lows. Watch for a speech by ECB’s Philip Lane today (March 15).

GBP/USD: The surging USD pressured GBP/USD, accelerating its decline to multi-day lows near 1.2740.

USD/JPY: The USD extended its winning streak for a third day, surpassing 148.00. Focus remains on the stronger dollar and higher US yields. Japan’s economic calendar only features Tertiary Industry Activity data today (March 15).

AUD/USD: Renewed selling pushed AUD/USD close to the crucial 200-day SMA (0.6560), printing fresh weekly lows. Australia releases Consumer Inflation Expectations data today (March 15).

WTI: Prices climbed to a new 2024 high above $81.00, supported by the IEA’s optimistic outlook, ongoing geopolitical tensions, and positive data from the EIA’s weekly report.

Gold Prices: The precious metal retreated from earlier gains. Gold dipped back towards recent lows near $2,150 per ounce on the stronger dollar and rising Treasury yields.

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