The US Dollar regained strength after hitting fresh two-month lows, bouncing back despite ongoing uncertainty over US tariffs and economic concerns. Market attention remains on key economic indicators and upcoming Federal Reserve speeches.
Key Market Highlights – February 27:
The US Dollar Index (DXY) recovered from multi-week lows near 106.20 on Wednesday, supported by mixed US bond yields and continued speculation about the US economy’s health. Investors are now eyeing weekly Initial Jobless Claims, Durable Goods Orders, and the latest Q4 GDP Growth estimate. Additionally, speeches from Fed officials Bowman, Hammack, and Harker may provide further insights.
EUR/USD retreated toward 1.0470 after failing to surpass the 1.0500 mark, erasing part of Tuesday’s gains. Upcoming data includes Eurozone Consumer Confidence, Economic Sentiment, and ECB’s M3 Money Supply figures.
GBP/USD struggled to hold gains above 1.2700, hovering around 1.2680. Traders now await the UK’s annualized Car Production data.
USD/JPY initially surged toward 150 but reversed course, closing near 149.00. Japan’s upcoming inflation figures, Industrial Production, Retail Sales, and Foreign Bond Investment data are expected to influence the yen.
AUD/USD remained under pressure for a fourth consecutive day, testing the key 0.6300 level. Australia’s Private Capital Expenditure report is next on the calendar.
In commodities, WTI crude oil extended its decline below $69.00 per barrel, weighed down by a stronger US Dollar and tariff concerns. Meanwhile, gold found support around $2,900 per ounce, while silver rebounded slightly, closing just under $32.00 per ounce.
Traders will continue to monitor US economic data and Federal Reserve commentary for further market direction.
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