Market Drivers – US Session

Dollar Fights Back: Key Data, Fed Speeches on Tap This Week


The US Dollar began the week on the defensive, hitting multi-week lows, but managed a rebound amidst a confluence of factors including tariff concerns, lower yields, and renewed worries about the US economy’s health. The US Dollar Index (DXY) fell to new two-month lows, approaching the key 106.00 support level.

This week’s economic calendar features several important releases, including the Conference Board’s Consumer Confidence index, the FHFA’s House Price Index, the Richmond Fed Manufacturing Index, and the API’s weekly crude oil inventory report. Additionally, Fed speakers Logan, Barr, and Barkin are scheduled to deliver remarks.

The EUR/USD briefly rose above 1.0500, buoyed by optimism following Sunday’s German election results. Key data releases for the Eurozone include Germany’s final Q4 GDP growth rate, the ECB’s Negotiated Wage Growth, and a speech by ECB’s Nagel.

The GBP/USD continued its upward trend, reaching new highs near the 1.2700 resistance level. The UK’s economic calendar is light, with the CBI Distributive Trades survey and a speech by BoE’s Pill on tap.

After three consecutive days of declines, the USD/JPY recovered, approaching the key 150.00 level. Japan’s economic releases include the final December Coincident Index and Leading Economic Index.

The AUD/USD traded around 0.6350 after failing to break above 0.6400. The RBA’s Jones will speak on Tuesday, followed by the RBA’s Monthly CPI Indicator and Construction Done figures on Wednesday.

Crude oil prices, driven by supply concerns, rose above $70.00 per barrel for West Texas Intermediate (WTI).

Gold prices climbed to near $2,960 per ounce troy, fueled by uncertainty surrounding US tariffs. Silver prices retreated, reaching multi-day lows near £2.00 per ounce.