US labor market is the focus, US dollar index falls below 105

DXY is experiencing fluctuations as the market reacts to President Trump’s latest tariff announcements, especially as he plans to raise tariffs on Chinese imports from 10% to 20%. Investors are evaluating the potential economic impact of these policies, and Trump also hinted that there could be a possible penalties for currencies.

At the same time, recent economic data are mixed. The RCM/TIPP economic optimism index was 49.8, lower than expected 53.1, indicating a weaker confidence.

Early Wednesday, the US dollar struggled to find demand as market focus shifted to February's ISM Services Purchasing Managers Index and ADP employment change data.

After a sharp decline on Monday, the U.S. dollar index fell nearly 1% on Tuesday. Addressing Congress later in the U.S. meeting, U.S. President Donald Trump reiterated that they would impose tariffs on products made by non-US. Meanwhile, in a TV interview with FoxNews, U.S. avatradescn.commerce Secretary Howard Lutnick hinted that Trump may be preparing to adjust his tariffs less than 48 hours after imposing tariffs. Although these avatradescn.comments failed to help market sentiment improve, the dollar failed to find a foothold. Both the Dow Jones Industrial Average (DJIA) and the S&P 500 fell more than 1% on Tuesday. Later that day, the U.S. Economic Calendar will also release factory order data for January, and the Federal Reserve will release its Beige Book.

Basic foreign exchange market trends:

Data from Australia shows that domestic market in the fourth quarterGDP is growing at an annual growth rate of 1.3%. This figure is surpassing market expectations by 1.2% after a 0.8% increase recorded in the previous quarter. Meanwhile, Andrew Hauser, deputy governor of the Reserve Bank of Australia (RBA), said earlier on Wednesday that indicators measuring global trade uncertainty are at 50-year highs. The Australian dollar/USD fluctuated in a narrow channel above 0.6250 early Wednesday after rising more than 0.7% on Tuesday.

BoJ Deputy Governor Shinichi Uchida said on Wednesday that he had no preset idea of ​​the pace of future rate hikes. “We don’t raise rates at every policy meeting,” he added. The dollar/yen rebounded decisively after falling to around 148.00 on Tuesday, with the last trading above 149.50.

Euro/USD maintained bullish momentum on Tuesday, up about 1.3% on the day. The pair insisted on a slight daily gain and easily traded above 1.0600 in early European trading on Wednesday.

The pound/dollar continued its uptrend, rising more than 0.7% on Tuesday. The pair held around 1.2800 early on Wednesday. Later that day, Andrew Bailey, President of the Bank of England (BoE), will testify before the Special avatradescn.committee of the Ministry of Finance.

Bulle market fundamentals:

Gold/USD consolidates sideways below $2,920.

Analysis of major currency trends:

Euro: The current upward acceleration of the euro/dollar indicates that the bullish trend reversal may be in progress. The intraday deviation remains upward, with a 100% forecast from 1.0358 to 1.0173 to 1.0531. A decisive breakthrough will consolidate this bullish view and next puts a 161.8% forecast target of 1.0932. On the downside, if the resistance below 1.0527 is switched to support, it will first turn into intraday center again.

Pound: The intraday bias of GBP/USD remains at the upward space of 1.2810 resistance. A resolute breakthrough will expand the rebound range from 1.2099 to 1.3433 to 1.2099 retracement level 1.2923. At present, as long as the 1.2558 support level is held, it is expected to rise further to prevent a pullback.

Yen: With the current recovery, the United StatesThe intraday bias of the Yuan/JPY becomes neutral again. The decline from 158.86 is the third line of the correction pattern since the high of 171.96. As long as the resistance level of 151.29 is held, it is expected to continue. The target below 148.08 is 11.8% retracement level 146.32 from 139.57 to 158.86. Continuous breakthroughs will pave the way for a decline to the low of 139.57. However, a breakthrough of 151.29 will turn bias back on the upward trend, achieving a stronger recovery first.

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