Forex Today: Risk-on mood put the Dollar under pressure

Forex Today: Risk-on mood put the Dollar under pressure

The resurgence of sentiment towards the risk-associated universe kept the price action around the US Dollar subdued at the beginning of a week that will be dominated by expectations around the release of US PCE.

Here is what you need to know on Tuesday, March 26:

The negative start of the week saw the USD Index (DXY) retreat from recent peaks, although maintaining the trade above the 104.00 hurdle. On March 26, the focus of attention will be on the release of US Consumer Confidence tracked by the Conference Board along with Durable Goods Orders and the FHFA’s House Price Index.

EUR/USD traded with decent gains and rebounded from the area of recent lows near the 1.0800 neighbourhood. Germany’s Consumer Confidence, measured by GfK, will take centre stage on March 26.

GBP/USD followed their risk-linked peers and left behind two daily pullbacks in a row on Monday, advancing past the 1.2600 barrier. Next of note in the UK docket will be the GDP figures on March 28.

USD/JPY started the week in a vacillating mood around the 151.50 zone, while market participants remained wary about potential FX intervention as the pair approaches the key 152.00 hurdle.

The improvement in appetite for the risk complex lent legs to AUD/USD and lifted it to the boundaries of the key 200-day SMA in the mid-0.6500s. Westpac’s Consumer Confidence Index and the speech by RBA’s Connolly are due on March 26.

Further supply concerns prompted WTI prices to regain some balance and reclaim the area beyond the $82.00 mark per barrel at the beginning of the week.

Renewed weakness in the greenback allowed Gold prices to edge higher after two consecutive sessions of losses. Silver, in the same tone, printed humble gains following the sharp sell-off seen in the latter part of last week.

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