Greenback Strengthens as Euro Pulls Back and US-EU Trade Tensions Escalate
| Action Insight Mid-Day Report 3-13-25 |
Greenback Strengthens as Euro Pulls Back and US-EU Trade Tensions Escalate |
Dollar is staging a notable rebound as markets transition into US session, though the exact catalyst behind the move is unclear. Part of Dollar’s strength could be attributed to a broad pullback in Euro, as traders begin to take profits after this month's strong gain. Euro’s retreat is providing the greenback with some temporary relief. However, broader geopolitical and trade tensions may also be influencing the market’s cautious sentiment. Trade tensions between the U.S. and Europe continue to escalate following fresh threats from US President Donald Trump. In response to the EU’s plan to impose retaliatory tariffs on American whiskey, Trump warned of a potential 200% tariff on European wine, champagne, and spirits. This marks an escalation in the ongoing trade dispute that began with Washington’s 25% tariffs on steel and aluminum imports. At the same time, geopolitical uncertainties are deepening as U.S. officials arrive in Moscow for ceasefire discussions over the Ukraine conflict. Russia appears to be taking a hardline stance, with Presidential Aide Yuri Ushakov dismissing the proposed truce as nothing more than a temporary reprieve for Ukraine’s military. Ushakov emphasized that Russia’s ultimate objective remains a long-term peace settlement that prioritizes its own national interests. This rigid position suggests that negotiations may not yield immediate breakthroughs. Against this backdrop, Dollar is emerging as the strongest performer of the day, followed by Yen and Loonie. On the other hand, Kiwi is currently the weakest performer, followed by Aussie and Euro. Sterling and the Swiss Franc are positioned in the middle..... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0867; (P) 1.0897; (R1) 1.0919; More... Intraday bias in EUR/USD stays neutral first. Deeper retreat might be seen towards 55 4H EMA (now at 1.0762). But strong support should be seen from 38.2% retracement of 1.0358 to 1.0946 at 1.0721 to contain downside. On the upside, break of 1.0946 will resume the rally from 1.0176 to retest 1.1274 key resistance next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:00 | AUD | Consumer Inflation Expectations Mar | 3.60% | 4.60% | | 00:01 | GBP | RICS Housing Price Balance Feb | 11% | 20% | 22% | | 07:30 | CHF | Producer and Import Prices M/M Feb | 0.30% | 0.20% | 0.10% | | 07:30 | CHF | Producer and Import Prices Y/Y Feb | -0.10% | -0.30% | | 10:00 | EUR | Eurozone Industrial Production M/M Jan | 0.80% | 0.80% | -1.10% | -0.40% | | 12:30 | CAD | Building Permits M/M Jan | -3.20% | -4.80% | 11.00% | 11.60% | | 12:30 | USD | Initial Jobless Claims (Mar 7) | 220K | 224K | 221K | 222K | | 12:30 | USD | PPI M/M Feb | 0.00% | 0.30% | 0.40% | 0.60% | | 12:30 | USD | PPI Y/Y Feb | 3.20% | 3.30% | 3.50% | 3.70% | | 12:30 | USD | PPI Core M/M Feb | -0.10% | 0.30% | 0.30% | 0.50% | | 12:30 | USD | PPI Core Y/Y Feb | 3.40% | 3.60% | 3.60% | 3.80% | | 14:30 | USD | Natural Gas Storage | -46B | -80B |
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