Thin Liquidity, Dollar Holds Position
In today's Asian session, the US dollar index (DXY) held around 97.12, maintaining a slight upward bias amid quiet trading.
This limited movement occurred due to thin liquidity: some Asian markets were still on Lunar New Year break, while US markets were just returning after the Presidents' Day holiday.
From a fundamental perspective, the dollar remained supported by investors' defensive posture following the release of softer US inflation figures, which increased market confidence that the Fed had room to cut interest rates. However, the dollar's strengthening was also subdued as expectations of a rate cut began to wane by mid-year.
This week's market focus turned to two main catalysts: the FOMC meeting minutes released on February 18th and US growth data (GDP), which could provide clues about the speed of policy easing.
In major markets, the euro fell slightly, the pound weakened, while the yen recovered briefly after weak Japanese GDP data fueled speculation of additional stimulus. The Aussie also appeared to be under pressure following the cautious tone of the RBA minutes.
Furthermore, volatility has the potential to increase as the data agenda becomes more dense, including inflation releases from several countries and a series of signals from central bank officials that could shift market positions on the interest rate path and the direction of the dollar. (Asd)
Source: Newsmaker.id
