Sterling, Euro Rise Against US Dollar in FX Market
The US dollar fell against its major trading partners, Sterling and Euro, early Tuesday ahead of a busy schedule of economic data releases and Federal Reserve appearances.
US consumer confidence data is due to be released and is anticipated to show further deterioration. “We are slightly more pessimistic than consensus expecting 93.0, and we mostly see downside risks for the dollar today”, ING analyst Francesco Pesole said in a note.
Purchasing Manager Index surprised on the upside in the US while jumping less than expected in the euro area, helping the euro-heavy DXY index find support into the 104.0-104.50 area, Pesole said.
Markets are keenly watching for clearer signals on where to place activity-related US dollar bets -with US dollar pulling back ahead of April 2 implement of US reciprocal tariffs. On Tuesday, Federal Reserve Bank of New York President John Williams said firms and households are “experiencing heightened uncertainty” about what lies ahead for the economy.
The average prices of single-family houses with mortgages guaranteed by Fannie Mae and Freddie Mac in the United States increased by 0.2% in January 2025, following an upwardly revised 0.5% rise in December, matching market forecasts.
Year-on-year, house prices rose by 4.8% in January, matching the revised reading in December. For the nine census divisions, seasonally adjusted monthly home price changes ranged from -0.8 percent in the South Atlantic division to +1.0 percent in the West North Central division.
The 12-month changes were all positive, ranging from +2.4 percent in the West South Central division to +8.2 percent in the Middle Atlantic division. A quick summary of foreign exchange activity heading into Tuesday showed that USDEUR rose to 1.0817 from 1.0802 at the Monday US close but was below a level of 1.0847 at the same time Monday morning.
There are no Eurozone data on Tuesday’s schedule. The next European Central Bank meeting is scheduled for April 16-17. GBPUSD rose to 1.2946 from 1.2922 at the Monday US close but was below a level of 1.2962 at the same time Monday morning.
UK car registrations declined sharply in February, while UK retail sector conditions deteriorated further in March, according to data released earlier Tuesday. The next Bank of England meeting is scheduled for May 8.
USDJPY fell to 150.1351 from 150.6491 at the Monday US close but was above a level of 149.6688 at the same time Monday morning. Japanese department store sales declined in February according to data released overnight. The next Bank of Japan meeting is scheduled for April 30-May 1.
USDCAD fell to 1.4285 from 1.4316 at the Monday US close and 1.4317 at the same time Monday morning. Canadian manufacturing sales for February are due to be released. The next Bank of Canada meeting is scheduled for April 16. FCMB Climbs as Investors Await Audited Results
