{"id":113073,"date":"2025-03-24T13:26:33","date_gmt":"2025-03-24T09:26:33","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=113073"},"modified":"2025-03-24T13:26:36","modified_gmt":"2025-03-24T09:26:36","slug":"dollar-slips-amid-tariff-uncertainty-euro-gains-on-german-pmi-data","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-slips-amid-tariff-uncertainty-euro-gains-on-german-pmi-data\/03\/24\/market-updates\/","title":{"rendered":"Dollar Slips Amid Tariff Uncertainty, Euro Gains on German PMI Data"},"content":{"rendered":"\n

<\/p>\n\n\n\n

The U.S. dollar edged lower<\/strong> on Monday, retreating from recent highs<\/strong> as uncertainty over President Trump\u2019s upcoming tariff policies<\/strong> weighed on market sentiment. Meanwhile, the euro rebounded<\/strong> following solid German economic data<\/strong>.<\/p>\n\n\n\n

At 05:10 ET (09:10 GMT)<\/strong>, the U.S. Dollar Index<\/strong> (DXY) traded 0.1% lower<\/strong> at 103.640<\/strong>, after reaching a three-week high on Friday<\/strong>. Last week, the index rose 0.4%<\/strong>, marking its first weekly gain this month<\/strong>.<\/p>\n\n\n\n

Dollar Under Pressure as Markets Await Tariff Clarity<\/strong><\/h3>\n\n\n\n
    \n
  • Concerns persist that Trump\u2019s trade policies<\/strong> could slow U.S. economic growth<\/strong> and fuel inflationary pressures<\/strong>.<\/li>\n\n\n\n
  • The next round of tariffs is due April 2<\/strong>, but reports from Bloomberg and WSJ<\/strong> suggest that Trump may take a more selective approach<\/strong>, imposing reciprocal levies only on certain countries<\/strong> rather than industry-wide tariffs<\/strong>.<\/li>\n\n\n\n
  • This uncertainty<\/strong> has led to a slight pullback in the dollar<\/strong>, though the market remains cautious ahead of the official announcement.<\/li>\n<\/ul>\n\n\n\n

    Euro Rises on Strong German Business Activity<\/strong><\/h3>\n\n\n\n
      \n
    • EUR\/USD:<\/strong> +0.2%<\/strong> to 1.0839<\/strong>, rebounding from a three-week low on Friday<\/strong>.<\/li>\n\n\n\n
    • The HCOB German Flash Composite PMI<\/strong> rose to 50.9 in March<\/strong> (from 50.4 in February), signaling the fastest business expansion in 10 months<\/strong>.<\/li>\n\n\n\n
    • Manufacturing production in Germany<\/strong> increased for the first time in nearly two years<\/strong>, supporting euro strength.<\/li>\n\n\n\n
    • France\u2019s private sector activity<\/strong>, however, remained in contraction for the seventh consecutive month<\/strong>, tempering overall eurozone optimism.<\/li>\n<\/ul>\n\n\n\n

      Other Currency Movements<\/strong><\/h3>\n\n\n\n
        \n
      • GBP\/USD:<\/strong> +0.3%<\/strong> to 1.2953<\/strong>, ahead of U.K. economic data<\/strong>, following the Bank of England\u2019s decision to keep interest rates unchanged last week<\/strong>.<\/li>\n\n\n\n
      • USD\/TRY:<\/strong> +1.5%<\/strong> to 37.947<\/strong>, with the Turkish lira weakening<\/strong> after Istanbul Mayor Ekrem Imamoglu<\/strong>, a key rival to President Erdogan<\/strong>, was jailed on corruption charges<\/strong>. Imamoglu has denied the allegations<\/strong> and called for nationwide protests<\/strong>.<\/li>\n\n\n\n
      • USD\/JPY:<\/strong>+0.2%<\/strong> to 149.60<\/strong>, after Japan\u2019s manufacturing PMI fell to 48.3<\/strong>, marking the fastest contraction in a year<\/strong>.\n
          \n
        • Bank of Japan Governor Kazuo Ueda<\/strong> reaffirmed the central bank\u2019s commitment to rate hikes<\/strong> if inflation nears its 2% target<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • USD\/CNY:<\/strong> +0.1%<\/strong> to 7.2539<\/strong>, as China remains cautious amid Trump\u2019s expected selective tariff strategy<\/strong>.<\/li>\n<\/ul>\n\n\n\n

          Market Outlook<\/strong><\/h3>\n\n\n\n

          The dollar\u2019s short-term movement<\/strong> will likely be driven by tariff policy developments<\/strong> and key U.S. economic data<\/strong> this week, including:<\/p>\n\n\n\n

            \n
          • Purchasing Managers\u2019 Index (PMI) reports<\/strong><\/li>\n\n\n\n
          • Personal Consumption Expenditures (PCE) price index<\/strong><\/li>\n\n\n\n
          • Revised Q4 GDP data<\/strong><\/li>\n<\/ul>\n\n\n\n

            With uncertainty surrounding Trump\u2019s trade policies<\/strong>, currency markets are expected to remain volatile<\/strong> in the days ahead.<\/p>\n\n\n\n

            <\/p>\n","protected":false},"excerpt":{"rendered":"

            The U.S. dollar edged lower on Monday, retreating from recent highs as uncertainty over President Trump\u2019s upcoming tariff policies weighed on market sentiment. Meanwhile, the euro rebounded following solid German economic data. At 05:10 ET (09:10 GMT), the U.S. Dollar Index (DXY) traded 0.1% lower at 103.640, after reaching a three-week high on Friday. Last …<\/p>\n","protected":false},"author":9,"featured_media":95648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6885,6987,8020],"class_list":["post-113073","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-fed","tag-inflation","tag-john-williams"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=113073"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113073\/revisions"}],"predecessor-version":[{"id":113074,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/113073\/revisions\/113074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/95648"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=113073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=113073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=113073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}