The United States dollar saw a decline against most of its major trading partners on Thursday, except for a slight gain against the Canadian dollar. The dip in the dollar’s strength comes as financial markets await key economic data releases......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
According to Chris Turner, an analyst at ING, the euro has been performing better this week. He noted that the US dollar index (DXY) showed slight weakness yesterday, mainly due to the euro’s strength.
Market analysts have been monitoring trade policies under former US President Donald Trump. This year’s shift in trade tariff decisions has introduced uncertainty, making it difficult for investors to predict long-term trends. There is speculation that new ‘reciprocal’ tariffs might be announced soon, potentially impacting economies like South Korea, India, and Brazil.
Meanwhile, the weekly natural gas inventory data is scheduled for release, and analysts are closely watching foreign exchange movements. As of Thursday:
The USD/EUR exchange rate rose slightly to 1.0393, up from 1.0392 at the US market close on Wednesday.
The British pound (GBP) strengthened against the dollar, with GBP/USD rising to 1.2462 from 1.2446.
Economic reports showed that the UK’s Gross Domestic Product (GDP) grew more than expected in December 2024, but consumer sentiment in the UK dipped in February 2025.
Key central bank meetings are also on the horizon:
The European Central Bank (ECB) will hold its next meeting on March 5-6.
The Bank of England (BoE) is scheduled to meet on March 20.
The Bank of Japan (BoJ) will meet on March 18-19, following the release of Japan’s producer price index, which showed expected growth in January.
In other currency movements:
The Japanese yen gained against the US dollar, with USD/JPY dropping to 153.8153 from 154.4230.
The Canadian dollar weakened slightly against the US dollar, with USD/CAD rising to 1.4293 from 1.4284.
While there were no major economic reports from Canada on Thursday, investors are looking ahead to the next Bank of Canada meeting on March 12 for further guidance on interest rate policies.