The Dollar Shows Resilience While the Euro Gains Momentum

U.S. Dollar Strength

The U.S. dollar displayed resilience during early European trading, maintaining most of its overnight gains despite the release of crucial U.S. inflation data. The Dollar Index, tracking the greenback against a basket of currencies, remained stable at 104.107 by 04:00 ET (09:00 GMT) after a volatile night.

Eurozone Expectations

In Europe, the euro edged higher at 1.0813, anticipating the release of the eurozone CPI figures for February. Analysts are predicting a slowdown in inflation from 2.8% in January to 2.5% in February, based on recent data from France and Germany.

British Market Insights

The British pound traded at 1.2635 following reports from Nationwide indicating an annual increase in house prices for the first time in over a year. Inflation in the U.K. is higher than in Europe and the U.S., suggesting a delayed response from the Bank of England towards rate cuts.

Impact on Asian Markets

Asian markets saw fluctuations, with the yuan weakening by 0.2% to 7.1989 after weak Chinese PMI data revealed a fifth consecutive month of contraction in February. The yen also traded higher at 150.66, influenced by U.S. rates and the Bank of Japan’s policies.