USD Holds Firm as Market Focus Shifts to Key Economic Data
The US Dollar (USD) maintained its upward momentum on Monday, closing higher for the fourth consecutive session. As the new trading day begins, the USD Index remains comfortably above 104.00. Investors are closely monitoring the upcoming US CB Consumer Confidence Index for February, alongside other key reports such as New Home Sales and regional manufacturing surveys. Additionally, market participants are awaiting fresh commentary from central bank officials.
US Dollar Performance Against Major Currencies
The table below highlights the weekly percentage changes of the USD against major global currencies. Notably, the USD demonstrated the strongest performance against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|
| – | 0.31% | 0.09% | 0.95% | -0.20% | -0.10% | 0.34% | 0.20% |
| -0.31% | – | -0.33% | 0.11% | -0.47% | -0.43% | 0.07% | -0.07% |
| -0.09% | 0.33% | – | 0.84% | -0.77% | -0.13% | 0.40% | 0.15% |
| -0.95% | -0.11% | -0.84% | – | -1.14% | -1.06% | -0.59% | -0.75% |
| 0.20% | 0.47% | 0.77% | 1.14% | – | 0.15% | 0.54% | 0.40% |
| 0.10% | 0.43% | 0.13% | 1.06% | -0.15% | – | 0.51% | 0.37% |
| -0.34% | -0.07% | -0.40% | 0.59% | -0.54% | -0.51% | – | -0.07% |
| -0.20% | 0.07% | -0.15% | 0.75% | -0.40% | -0.37% | 0.07% | – |
Economic Indicators and Market Sentiment
Recent US economic data revealed that private sector activity expanded at an accelerated pace in March. The S&P Global Composite PMI climbed to 53.5, up from 51.6, signaling continued economic resilience. Additionally, US President Donald Trump reaffirmed plans to impose additional tariffs on automobiles, aluminum, and pharmaceuticals, further influencing market sentiment.
On Wall Street, major indices surged on Monday, buoyed by improved risk appetite. However, in early Tuesday trading, US stock index futures are showing marginal declines.
Currency Market Overview
- USD/JPY: The USD/JPY pair rallied nearly 1% on Monday, reaching its highest level since early March, nearing 151.00 before retreating to 105.50 by the European session on Tuesday. Bank of Japan (BoJ) Governor Kazuo Ueda commented that the central bank needs additional time to evaluate its exchange-traded fund (ETF) holdings.
- EUR/USD: The euro initially gained in the European session on Monday but later reversed course, closing with minor losses. On Tuesday, the EUR/USD pair remains range-bound, trading just below 1.0800 as traders await Germany’s business sentiment data.
- GBP/USD: The British pound erased most of its Monday gains during the American session, ultimately closing slightly lower. The GBP/USD pair continues to trade near 1.2900 on Tuesday morning.
Gold Struggles Amid Risk-Positive Sentiment
Gold prices remained under pressure as risk-on sentiment dominated financial markets. XAU/USD closed lower for the third consecutive session on Monday but is holding steady above $3,000 early Tuesday.
Conclusion
The US Dollar continues to demonstrate resilience ahead of crucial economic data, while market participants closely monitor central bank remarks and geopolitical developments. With upcoming consumer confidence figures and policy discussions, volatility may persist in the forex market in the coming days.
