The US Dollar strengthens against major currencies as traders await Thursday’s economic reports following in-line CPI data.
The US Dollar Index (DXY) climbed back above 100.00 on Wednesday, recovering from a post-CPI dip as inflation data met expectations. The greenback gained ground against most major currencies, including the EUR, GBP, and JPY, ahead of a packed economic calendar on Thursday.
EUR/USD retreated toward 1.1500 after earlier gains, while GBP/USD slipped into the high 1.3400s as markets positioned for the UK GDP report. USD/JPY advanced toward 159.50, extending its rebound. Gold prices rose near $4,410 per ounce amid heightened Middle East tensions, while WTI crude held steady around $83.00 per barrel due to geopolitical risks in the Strait of Hormuz.
The US Dollar’s strength was broad-based, with the New Zealand Dollar showing the largest decline among majors. Traders are now focused on upcoming economic releases, which could further influence Fed policy expectations.