{"id":49795,"date":"2026-03-25T01:51:11","date_gmt":"2026-03-25T01:51:11","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/a-firmer-us-dollar-reflects-higher-yields-hawkish-fed-bets-oil-driven-inflation-worries-and-weak-eurozone-pmis\/"},"modified":"2026-03-25T01:51:11","modified_gmt":"2026-03-25T01:51:11","slug":"a-firmer-us-dollar-reflects-higher-yields-hawkish-fed-bets-oil-driven-inflation-worries-and-weak-eurozone-pmis","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/live-updates\/a-firmer-us-dollar-reflects-higher-yields-hawkish-fed-bets-oil-driven-inflation-worries-and-weak-eurozone-pmis\/","title":{"rendered":"A firmer US Dollar reflects higher yields, hawkish Fed bets, oil-driven inflation worries and weak Eurozone PMIs"},"content":{"rendered":"The US Dollar Index traded near 99.50 as higher US Treasury yields and tighter Federal Reserve pricing supported the Dollar amid mixed risk sentiment. WTI rose towards $92 per barrel, adding to inflation pressure and supporting the currency.\n\nEUR\/USD dropped towards 1.1580 after weak Eurozone PMI readings, with services activity close to flat. GBP\/USD fell to about 1.3385 as UK business activity slowed and cost pressures rose alongside higher energy prices.\n\n

Key Moves Across Major Pairs<\/h3>\nUSD\/JPY held near 159.00, backed by higher US yields, while the Yen stayed weak due to policy gaps. AUD\/USD touched 0.6940, helped at times by a softer Dollar but limited by growth worries tied to weak PMIs and higher energy costs.\n\nGold traded around $4,406 after Monday\u2019s low at $4,098, with support from geopolitical risk but capped by yields and the firm Dollar. Data due includes Australia CPI (Feb), UK CPI, PPI and RPI, Switzerland ZEW expectations (Mar), Germany IFO (Mar), and the SNB bulletin (Q1).\n\nLater releases include Germany GfK (Apr), Eurozone GDP (Q4), US jobless claims, New Zealand ANZ\u2013Roy Morgan confidence (Mar), UK confidence (Mar) and retail sales (Feb), Eurozone HICP (Mar) and US Michigan sentiment. WTI pricing is shaped by supply and demand, OPEC quotas, the US Dollar, and API and EIA stock reports, which are within 1% of each other 75% of the time.\n\nA year ago, we saw the US Dollar Index pushing towards 99.50, fueled by an aggressive Federal Reserve and soaring yields. Today, with the DXY trading closer to 95.00, the landscape has clearly shifted as the Fed now signals a more patient approach to interest rates. This suggests that continuing to bet on broad dollar strength, a winning strategy in early 2025, is now a much riskier proposition.\n\nWe are watching oil prices closely, as West Texas Intermediate now trades near $78 per barrel, a notable drop from the $92 level seen this time last year. The primary inflation driver has shifted from geopolitical supply shocks to persistent tightness in labor markets. This means traders should focus less on oil supply headlines and more on employment data, like last week’s US initial jobless claims of 215,000, for clues on inflation.\n\n

What Traders Are Watching Now<\/h3>\nThe EUR\/USD has shown significant recovery from the 1.1580 zone it struggled with in March 2025, when poor business activity data weighed heavily on the currency. Now, with the latest preliminary inflation figures from the Eurozone showing a 3.2% annual rate, the European Central Bank’s policy decisions are the main driver. We see potential for further euro strength if upcoming growth data confirms the bloc is avoiding a deep recession.\n\nLooking back, the British Pound was falling hard near 1.3385 due to intense cost pressures in the United Kingdom. While the situation has stabilized, the upcoming UK inflation data remains a critical event for sterling pairs. Any surprise to the upside on inflation could force the Bank of England’s hand and introduce significant volatility.\n\nThe extreme policy divergence that sent USD\/JPY screaming towards 159.00 has cooled considerably. The pair\u2019s pullback reflects the narrowing interest rate gap between the US and Japan. Traders who were riding that powerful uptrend last year must now consider strategies that profit from range-bound trading or even further yen strength.\n\nGold is a different story today compared to last year when its upward momentum was capped near $4,400 by the strong dollar. With US yields having pulled back from their 2025 peaks, gold is showing renewed strength. We believe call options on gold could be an effective way to play the current macroeconomic environment.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Dollar Index near 99.50 on higher yields; oil climbs, euro and sterling dip; gold steadies, key data awaited.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-49795","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t