The USD is tracking a little higher so far today but markets appear to be idling as investors await data and developments. Dollar gains are marginal in broad terms but more significant gains have been notched up against the high beta/commodity currencies—AUD, NZD, SEK, NOK—following mixed equity market returns in Asia and flat to mildly weaker trends in US equity futures, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Underlying trends remain bearish
"Investors remain concerned that US reciprocal tariff action due in April may further disrupt risk appetite. Yesterday’s US CPI data brought some mixed news on prices. Headline and core rates of inflation came in lower than forecast. But some of the dampening effects on inflation (lower airfares) may not be reflected in the PCE data and airfare weakness may be a further sign of softer consumer demand."
"While the DXY has picked up a little ground, gains are limited and the market may only be developing a mild technical correction within the confines of what appears to be a still-developing downtrend. Trend momentum signals are aligning bearishly for the index across the short-, medium– and long-term studies which is typically a sign that countertrend rallies or rebounds will be limited in terms of scale and duration."
"Typically, therefore, these sorts of rebounds would be an opportunity to reload or add to short positioning. DXY resistance sits at 103.70, near current levels, and 104.00/05. Recent CFTC data has reflected a reduction in net USD long positioning but investors remain generally long USDs. Other data suggests that active traders have not reduced USD exposure all that much, however."
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
Gold now targets the $3,000 mark
Gold extended its rally on Thursday, hitting a fresh record past the $2,980 mark per troy ounce as escalating trade conflicts and mounting worries about global growth fueled intense safe-haven demand.
EUR/USD bounces off lows near 1.0820, Dollar loses traction
EUR/USD attempts some recovery following lows near 1.0820 as the US Dollar chalks up another strong day. In the meantime, persistent tariff jitters and disappointing February US Producer Price data are keeping the pair on the back foot.
GBP/USD succumbs to USD gains, remains near 1.2950
GBP/USD continues to fluctuate at around 1.2950 on Thursday as the US Dollar's resilience doesn't allow the pair to gain traction. In the meantime, safe-haven flows dominate the markets following the bearish opening in Wall Street, further supporting the USD.
Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation
Metaverse tokens are cryptocurrencies associated with virtual worlds, digital economies, and immersive online experiences. Tokens like Sandbox, Decentraland, and Axie Infinity, three of the most prominent assets during the Metaverse boom of 2021, continue to face correction since they topped in early December.
Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances
The UK government desperately needs higher economic growth as it grapples with spending cuts and potential tax rises later this year. A reset of UK-EU economic ties would help, and sweeping changes are becoming more likely.
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.