The Greenback managed to regain strong upside traction and bounced off recent three-year lows vs. its main peers despite persistent tariff jitters and further Trump-Powell effervescence.
The US Dollar Index (DXY) posted decent gains on Tuesday, reversing part of the Monday’s pessimism despite the mixed tone in US yields across the board. The weekly MBA Mortgage Applications are due, followed by the flash S&P Global Manufacturing and Services PMIs, New Home Sales, the EIA’s weekly report on US crude oil stockpiles, and the Fed’s Beige Book.
EUR/USD lost upside momentum following Monday’s yearly peaks, receding to the 1.1430 area in response to the firmer tone in the US Dollar. The advanced HCOB Manufacturing and Services PMIs in Germany and the Euroland will be released, seconded by the EMU’s Balance of Trade results and Construction Output.
GBP/USD slipped back to the low-1.3300s after failing to extend its rally north of tops around the 1.3420 zone. The Public Sector Net Borrowing figures are due along the advanced S&P Global Manufacturing and Services PMIs.
USD/JPY broke below the 140.00 support for the first time since September 2024, although it managed to stage a strong rebound later in the day. The preliminary Jibun Bank Manufacturing and Services PMIs are expected on the Japanese docket.
AUD/USD receded from yearly peaks near 0.6440 following the better tone in the Greenback. The flash S&P Global Manufacturing and Services PMIs are due on April 23.
WTI prices rebounded with certain conviction past the $63.00 mark per barrel despite the stronger Dollar and unabated concerns surrounding US tariffs.
Gold prices rose to a record high at $3,500 per troy ounce underpinned by safe-haven demand. However, the yellow metal retraced part of that advance in the latter part of the day. Silver prices added to Monday’s uptick, coming closer to the key $33.00 mark per ounce.