Market Drivers: Dollar Recovers Amid Economic Uncertainty

The US dollar rebounded from a two-month low of around 106.20 on the Dollar Index (DXY), despite lingering concerns about US tariffs and economic health.

This recovery occurred amidst mixed US Treasury yields. Key US economic data releases today include weekly jobless claims, durable goods orders, and a revised Q4 GDP growth estimate. Federal Reserve officials Bowman, Hammack, and Harker are also scheduled to speak.

Currency Pair Highlights:

EUR/USD: The Euro retreated to near 1.0470 after failing to break above 1.0500. Today’s focus is on final Eurozone consumer confidence and economic sentiment, along with ECB M3 money supply data.

GBP/USD: Sterling struggled to maintain gains above 1.2700, settling around 1.2680. UK car production figures are due.

USD/JPY: The Yen strengthened, pushing USD/JPY down from the 150 level to near 149.00. Tomorrow’s Japanese economic releases include Tokyo inflation, industrial production, retail sales, housing starts, construction orders, and foreign bond investment data.

AUD/USD: The Australian dollar continued its downward trend, testing the 0.6300 support level. Quarterly private capital expenditure data will be released.
Commodities:

WTI Crude Oil: Oil prices fell below $69.00 per barrel, pressured by a stronger US dollar and ongoing tariff concerns.
Gold: Gold experienced a slight pullback but found support around $2,900 per ounce.