The US dollar traded uncertainly with investors struggling to determine a clear direction of movement as the market remains plagued by the uncertainty of the tariff war.
Compared to the strengthening that was displayed at the beginning of the week, the major currency returned to show a dismal performance following the United States (US) economic data that came with weak readings in the New York session yesterday.
The US consumer confidence survey showed lower figures than expected, and recorded a record low in 4 years.
The same was recorded in the new home sales figures for February, which missed the target.
As previously warned by market analysts, concerns about tariffs with a new round starting in April will continue to affect investor confidence in the market.
Therefore, the recovery of the US dollar at the end of last week to continue this week is expected to be temporary despite reports that President Donald Trump will be more flexible in implementing reciprocal tariffs.
Additionally, investors are increasingly cautious for the riskier end-of-March trading which also closes the first quarter of 2025 trading.
The focus of trading today (Wednesday) will be on Australian inflation data in the Asian session and UK inflation data in the European session.
Next, the market awaits the US economic growth report for the fourth quarter of 2024 for the final reading as well as the PCE price index which will drive a clearer direction for the US dollar ahead of the April trading opening.
