The small bias in favor of the risk-on space weighed on the dollar at the start of a new trading week, although the consolidation mood is expected to kick in soon ahead of Powell's testimonies, ECB meetings and key US NFPs.
Here's what you need to know on Tuesday, March 5:
The continuation of the recovery in the risk complex kept pressure under the US Dollar, causing the second consecutive daily decline in the USD Index (DXY). The final S&P Global Services PMI will be released on March 5, followed by the ISM Services PMI, Factory Orders, and the RCM/TIPP Economic Optimism Index. In addition, the intervention of M. Barr of the Fed is planned.
The EUR/USD pair continued to rise late last week and reached multi-session highs around 1.0860. On the Euro agenda, final HCOB services PMIs for Germany and the broader Euro bloc will not be released until March 5.
Renewed selling pressure in the Dollar allowed GBP/USD to rise to four-day highs at levels slightly below the 1.2700 figure. In the UK, BRC Retail Sales will be released on March 5, along with the final S&P Global Services PMI.
USD/JPY kept bullish momentum unchanged and flirted with the 150.60 zone amid dollar weakness and rising US yields. On March 5, Tokyo inflation figures and the final services PMI from Jibun banks will be released.
AUD/USD ignored the dollar's soft tone and retested the 0.6500 support, reversing two consecutive daily advances. Fourth quarter banking services PMI and checking account will be released.
In China, all attention is expected to focus on the National People's Congress along with the release of the Caixin services PMI.
WTI prices corrected lower after two consecutive sessions of gains, returning below $80.00 per barrel, as traders digested the news that OPEC+ will extend its oil production cuts into the second quarter .
Gold prices hit multi-week highs around $2,100 per troy ounce, thanks to continued speculation about the Fed's rate cut in June. Silver followed suit and reached new two-month highs around $23.50 an ounce, amid persistent selling pressure on the Dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
