The Canadian Dollar (CAD) found a foothold against the US Dollar (USD) on Tuesday, cycling near the 1.4300 handle after Canadian Consumer Price Index (CPI) inflation accelerated even faster than expected in February.
The Greenback remained under heavy pressure, retreating for the third day in a row and revisiting the area of multi-month troughs amid rising prudence ahead of the FOMC event on Wednesday, tariffs fears and geopolitical jitters.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of six currencies, is stabilizing after avoiding a fresh five-month low.
The Dow Jones Industrial Average (DJIA) pulled back around 300 points on Wednesday, snapping a two-day win streak and pushing back into the low side as equities remain unable to find a consistent reason to pivot confidently out of a recent downturn sparked by ongoing geopolitical turmoil pouring out of the White House since Donald Trump took office as President in January.
The Mexican Peso (MXN) lost some ground against the US Dollar (USD) on Tuesday as traders brace for the United States (US) Federal Reserve (Fed) monetary policy decision on Wednesday.
The Pound Sterling retreated during the North American session against the US Dollar after hitting a four-and-a-half-month high at 1.3000 before trimming earlier gains.
Pound Sterling (GBP) retains a firm tone versus the USD, reaching the 1.30 level for the first time since November before drifting back slightly, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Germany’s ZEW investor confidence survey had a serious glow up in the wake of the German government’s plans to boost infrastructure and defense spending significantly.
Spot moved nicely lower yesterday as the US Dollar (USD) tone stayed soft, the White House stayed relatively quiet in tariffs and stocks picked up a bit more ground, giving high beta FX a broader lift.
In the Global Economic Outlook (GEO) report published on Tuesday, Fitch Ratings said that they have lowered the US economic growth forecast to 1.7% from 2.1% in December's report and cut the 2026 growth projection to 1.5% from 1.7%.
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