The Greenback’s Decline: A Closer Look
The US Dollar Index (DXY) has been facing significant pressure, hitting five-month lows as concerns over the Trump administration’s trade policies and fears of a potential economic slowdown in the US continue to weigh on the currency.
Key Events Impacting the US Dollar
- Release of Retail Sales data
- NY Empire State Manufacturing Index
- Business Inventories
- NAHB Housing Market Index
- Building Permits
- Housing Starts
- Import and Export Prices
- Industrial and Manufacturing Production
- API’s weekly report on US crude oil inventories
Additionally, other important economic indicators such as the weekly MBA’s Mortgage Applications, Net TIC Flows, and the EIA’s report on US crude oil stockpiles will be released this week.
Euro and Pound Trends
The EUR/USD pair continues to climb, reaching multi-month highs and setting its sights on the 1.1000 level. Meanwhile, GBP/USD has shown gains, surpassing the 1.2900 mark and targeting the psychological barrier of 1.3000.
Upcoming Economic Data in Europe
- ZEW Economic Sentiment in Germany and the euro area
- Balance of Trade results in the euro zone
- Final Inflation Rate in the Euroland
- Labour Cost Index and Wage Growth
- Producer Prices in Germany and Construction Output in the euro area
Japanese Yen and Australian Dollar Movements
USD/JPY has seen a partial recovery from previous losses, while AUD/USD closed the week with gains, surpassing the key level of 0.6300.
Key Events in Japan and Australia
- BoJ meeting
- Balance of Trade and Machinery Orders in Japan
- Final Industrial Production figures
- Japan’s Inflation Rate and Reuters Tankan Index
- Westpac Leading Index in Australia
Insights from Economic Leaders
- RBA’s Hunter speaking on March 18
- BoE’s Bailey and BoC’s Macklem speaking on March 19
- Fed’s Williams speaking on March 21
Central Banks’ Monetary Policy Decisions
- BoJ and Fed meetings on March 19
- BoE, SARB, Riksbank, SNB, and PboC rate decisions on March 20