As the new week kicks off, the US Dollar (USD) maintains its stability, exhibiting sideways movement against a basket of major currencies, with the USD Index holding firm above the 104.00 mark during the European morning on Monday. Noteworthy events on the US economic calendar include the release of February New Home Sales data and the Federal Reserve Bank of Chicago’s National Activity Index. Market observers are also keenly awaiting insights from central bank officials.
USD Performance in the Last 7 Days
In the past week, the US Dollar demonstrated resilience, recording notable gains across major currencies, particularly against the Japanese Yen. Despite experiencing a sharp decline during the American session last Wednesday, the USD Index staged a remarkable recovery, closing the week with nearly a 1% gain. This upward momentum was fueled by optimistic macroeconomic indicators from the US, underscoring the nation’s economic strength amidst speculations of a potential Federal Reserve rate cut in June.
Key Currency Pair Movements
USD/JPY: Despite a slight dip on Friday, USD/JPY concluded the week on a positive note, hovering above the 151.00 level at the start of the week. Japan’s currency diplomacy emphasized a vigilant stance against excessive Yen weakness, with economic data revealing a mixed picture for the nation’s indices.
EUR/USD: Finding stability above 1.0800, EUR/USD recovered from losses sustained over the past two weeks. Eurostat’s forthcoming release of business and consumer sentiment data for March is anticipated to provide further insights into the Eurozone’s economic landscape.
GBP/USD: Last week saw GBP/USD plunging to its lowest point since mid-February before a minor rebound. Trading near the 1.2600 mark on Monday, the pair awaits a speech from Bank of England (BoE) policymaker Catherine Mann, potentially influencing its trajectory.
Gold (XAU/USD): Despite significant losses on Friday, gold concluded the week with marginal gains. Currently in a consolidation phase below $2,170, XAU/USD dynamics are poised for further observation.
AUD/USD: After experiencing a 1% decline on Friday, AUD/USD showed signs of recovery in the Asian session on Monday, albeit struggling to sustain momentum. The pair hovers within a narrow range above 0.6500 during the European morning.
As the week progresses, market participants remain attuned to economic data releases and central bank commentary, poised to navigate potential shifts in currency dynamics.
