The US dollar experienced a decline against its primary trading counterparts, the Pound Sterling and the Euro, in early Tuesday trading, ahead of a series of scheduled economic data releases and Federal Reserve appearances.
The release of US consumer confidence data is anticipated, with forecasts indicating a continued deterioration. “Our expectations are slightly more pessimistic than the consensus, projecting 93.0, and we perceive predominantly downside risks for the dollar today,” noted ING analyst Francesco Pesole.
The Purchasing Manager Index surpassed expectations in the US, while increasing less than anticipated in the Eurozone, providing support for the Euro-heavy DXY index within the 104.0-104.50 range, Pesole observed.
Market participants are closely monitoring for definitive indications regarding the placement of activity-related US dollar bets, with the US dollar retracting ahead of the April 2 implementation of US reciprocal tariffs. On Tuesday, Federal Reserve Bank of New York President John Williams stated that businesses and households are “experiencing heightened uncertainty” concerning the economy’s future.
The average prices of single-family homes 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% increase in December, aligning with market forecasts.
Year-on-year, home prices increased by 4.8% in January, matching the revised December reading. For the nine census divisions, seasonally adjusted monthly home price changes varied from -0.8 percent in the South Atlantic division to +1.0 percent in the West North Central division.
The 12-month changes were uniformly positive, ranging from +2.4 percent in the West South Central division to +8.2 percent in the Middle Atlantic division. A concise overview of foreign exchange activity heading into Tuesday revealed that USDEUR rose to 1.0817 from 1.0802 at the Monday US close, but remained below the 1.0847 level recorded at the same time on Monday morning.
The Eurozone data schedule for Tuesday was devoid of releases. The next European Central Bank meeting is scheduled for April 16-17. GBPUSD increased to 1.2946 from 1.2922 at the Monday US close, but stayed below the 1.2962 level recorded at the same time on Monday morning.
UK car registrations experienced a sharp decline in February, while UK retail sector conditions further deteriorated in March, according to data released earlier on Tuesday. The next Bank of England meeting is scheduled for May 8.
USDJPY decreased to 150.1351 from 150.6491 at the Monday US close, but remained above the 149.6688 level recorded at the same time on Monday morning. Japanese department store sales declined in February, according to overnight data. The next Bank of Japan meeting is scheduled for April 30-May 1.
USDCAD decreased to 1.4285 from 1.4316 at the Monday US close and 1.4317 at the same time on Monday morning. Canadian manufacturing sales for February are scheduled for release. The next Bank of Canada meeting is scheduled for April 16.
