The US dollar index hovered around a three-week high, supported by robust economic data showing a rebound in the service sector. However, concerns about potential tariffs and policy shifts under the new administration weighed on business expectations, creating uncertainty in the market. The dollar strengthened against most major currencies, particularly the yen, as traders assessed the potential impact of President Trump’s recent remarks on tariffs.
- The dollar index reached a three-week high of around 104.3.
- US business activity picked up in March, driven by a strong service sector.
- Business expectations for the year ahead declined due to concerns about demand, tariffs, and policy shifts.
- President Trump’s remarks on tariffs sparked hopes for a more targeted approach but also added to market uncertainty.
- The dollar strengthened against most major currencies, especially the yen.
The asset’s current position is precariously balanced. Positive economic indicators are providing upward momentum, but this is being countered by anxieties surrounding future trade policy. The potential for increased tariffs casts a shadow on future growth. The asset’s strength against other major currencies indicates underlying confidence, but the overall outlook remains uncertain.