The U.S. Dollar (USD) traded higher on Tuesday, recovering from Monday’s drop as markets absorbed the U.S. Supreme Court’s ruling against President Donald Trump’s tariffs alongside the fresh round of levies announced over the weekend. The Greenback also drew support from renewed hawkish messaging by several Federal Reserve officials, who emphasized that inflation must fall further before rate cuts can resume. Meanwhile, the ADP Employment Change four-week average ticked up to 12.8K from the prior 11.5K.
The U.S. Dollar Index (DXY) hovered near the 97.80 area, up more than 0.10% after two straight losing sessions. Chicago Fed President Austan Goolsbee said he remains hopeful about additional rate cuts, but only once inflation moves back toward target. Recent U.S. data also indicated improving household confidence in the labor market and signs of moderating inflation.
In the currency market, EUR/USD traded around 1.1790, largely flat on the day, as the European Central Bank remains effectively on hold with inflation close to its 2% goal. GBP/USD hovered near 1.3510, trimming earlier gains but still positive, even after Bank of England Governor Andrew Bailey signaled openness to further easing amid uncertainty surrounding U.S. trade policy.
USD/JPY climbed sharply toward 155.70 after reports that Japan’s Prime Minister Sanae Takaichi urged caution on additional Bank of Japan rate hikes during a recent meeting with Governor Kazuo Ueda.
AUD/USD held near the 0.7060 zone, ending the U.S. session broadly neutral as a firmer dollar offset support for the Australian currency from the Reserve Bank of Australia’s relatively hawkish stance, backed by persistent inflation and solid domestic fundamentals.
USD/CAD traded around 1.3700, little changed after touching a three-week high earlier in the session, with attention now turning to Canada’s fourth-quarter GDP release due Friday.
Gold slipped to around $5,155, falling more than 1% and snapping a four-day winning streak as the stronger dollar weighed on the metal.
What’s next on the calendar
Wednesday, February 25
Thursday, February 26
Friday, February 27
-
Switzerland Q4 GDP
-
Germany February flash CPI
-
Germany February flash HICP
-
Canada Q4 GDP
-
U.S. Producer Price Index (PPI)
