The US Dollar Index (DXY) declined on Monday, remaining in the low-103.00s due to concerns about a potential economic slowdown. Key data releases include Building Permits, Housing Starts, and reports on Import/Export Prices and Industrial Production.
EUR/USD rose above the 1.0900 level, supported by a weaker US Dollar, while upcoming Economic Sentiment data from Germany and the Eurozone will be significant. GBP/USD aimed for the 1.3000 mark following USD selling, with the labour market report and the Bank of England’s interest rate decision expected on March 20.
Currency Movements
USD/JPY surpassed 149.00, although momentum waned, and the Tertiary Industry Index is anticipated. AUD/USD climbed above 0.6300, reaching multi-day highs on optimistic market sentiment.
WTI prices increased, trading above $68.00 per barrel, while gold hovered around $3,000 per troy ounce, maintaining a positive tone driven by the weaker dollar. Silver prices saw a slight decline, moving back towards $33.50 per ounce.
The retreat of the US Dollar Index (DXY) to the lower 103.00s suggests ongoing concerns about the strength of the economy. A weaker currency often reflects market expectations, particularly when upcoming economic reports could shed light on future growth prospects. This week’s data—covering Building Permits, Housing Starts, Import/Export Prices, and Industrial Production—will provide insights into both consumer demand and broader economic activity. If these readings indicate a slowdown, expectations around monetary policy may shift further in response.
In response to dollar weakness, the euro made strides beyond the 1.0900 mark. A key focus now will be the release of Economic Sentiment figures from both Germany and the broader Eurozone. These figures will reveal whether optimism is gaining traction or if uncertainties persist. If sentiment improves, it could reinforce the euro’s position, while disappointing data may put recent gains at risk. Sterling followed a similar trajectory, moving towards 1.3000 amid selling pressure on the greenback. However, its next moves will largely depend on the forthcoming labour market report and the Bank of England’s interest rate decision, due on 20 March. Any indications of economic strain or dovish policy adjustments could temper the currency’s latest rise.
Meanwhile, the yen pushed beyond 149.00 against the dollar, though further advances lacked conviction. Traders eyeing Japan’s Tertiary Industry Index will be watching whether domestic economic activity supports more momentum. A stronger-than-expected reading could provide additional resilience to the currency. Attention also turned to the Australian dollar, which climbed above 0.6300 to reach multi-day highs. Optimism across financial markets played a role in this movement, and how long this sentiment holds will likely influence whether gains persist.
Commodity Trends
Beyond currencies, commodities reflected shifting sentiment as well. Crude oil prices edged higher, with WTI trading above $68.00 per barrel, supported by ongoing dynamics in supply and demand expectations. Precious metals showed mixed performance—gold continued to trade around $3,000 per troy ounce, maintaining a firm tone amid the weaker dollar, while silver experienced a slight setback, easing towards $33.50 per ounce. These markets will continue to react to currency fluctuations and broader economic signals in the sessions ahead.
