The US Dollar (USD) is slightly softer on the session. The USD benefitted from stronger than expected preliminary March US PMI data yesterday which fended off slowing growth concerns, Scotiabank's Chief FX Strategist Shaun Osborne notes.
USD slips back as markets await clarity on tariffs
"DXY gains extended through the low/mid 104 area but were tempered by comments from President Trump who indicated that sectoral tariffs (autos, pharma. Lumber, chips) might well be coming soon (after reports indicated that the administration was focused on reciprocal tariffs for the April 2nd announcement). He later conceded that many countries might get tariff concessions, however. The president also said he would like to see the Fed lower interest rates."
"The DXY is tracking a little lower this morning, with the AUD leading gains among the core majors after the government unveiled surprise tax cuts in a pre-election budget. The EUR is a little firmer, while German bunds are underperforming, following comments from ECB hawks suggesting policymakers may pause the easing cycle in April. Speaking on Bloomberg yesterday, Stephen Miran, chair of the White House CEA said the president was focused on using tariffs to rebalance global trade."
"Pressed on whether FX could be used as a lever, Miran said the idea could be entertained down the road. Intraday price action in the DXY looks toppish, with the 6-hour chart reflecting negative price patterns developing around the overnight peak at 104.47. Intraday losses through 104 should see strengthening, bearish pressure on the index develop. Housing data and Consumer Confidence (which may see a fourth consecutive drop) are the main US data releases."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD recovers above 0.6300 as US Dollar retreats
AUD/USD has turned positive and regains 0.6300 in Thursday's Asian session. The US Dollar sees a sharp pullback from three-week highs after US President Trump announced some tariff exemptions on auto part imports, supporting the pair. However, buyers remain caution amid fears of global trade war escalation.
USD/JPY drops to test 150.00, tracks US Dollar pull
USD/JPY is dropping to test 150.00 in the Asian session on Thursday. The pair meets fresh supply in tandem with the US Dollar on US President Trump's latest tariff exemption announcement. Further, hawkish BoJ bets and the risk-off impulse also underpin the safe-haven Japanese Yen, aiding the latest leg down
Gold awaits US PCE inflation data for a sustained move higher
The gold price is finding fresh demand above $3,000 early Thursday, following a lacklustre performance on Wednesday. Gold buyers try their luck and aim for the record high of $3,058 once again as they near Friday’s US inflation test.
GameStop's plan to issue $1.3 billion convertible notes to buy Bitcoin could boost crypto market and meme coins
Video game retailer GameStop announced on Wednesday that it plans to issue senior convertible note offerings worth $1.3 billion. The company aims to use part of the proceeds from the offerings to buy Bitcoin.
Sticky UK services inflation shows signs of tax hike impact
There are tentative signs that the forthcoming rise in employer National Insurance is having an impact on service sector inflation, which came in a tad higher than expected in February. It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.