USD Strength on Super Tuesday & PMI Data Release
The U.S. Dollar is showing strength as Super Tuesday and U.S. PMI data unfold.
- The US Dollar is currently showing strength against all major G20 counterparts, with markets preparing for the release of US PMI numbers.
- This comes after absorbing discouraging remarks from China’s National People’s Congress.
- The US Dollar Index remains around the 104.00 mark, and the upcoming PMI data has the potential to significantly impact the market.
On this Tuesday, the US Dollar (USD) experiences an upward surge, coinciding with Super Tuesday, during which former US President Donald Trump is anticipated to enhance his support in the quest for Republican Party candidacy. Overnight, the USD received a lift due to market dissatisfaction with economic developments announced during China’s National People’s Congress (NPC). Anticipating increased stimulus from the world’s second-largest economy, markets are currently penalizing the Chinese Yuan (CNY), contributing to the US Dollar’s strengthened position.
In terms of the economic calendar, S&P Global is scheduled to unveil the conclusive figures for the Services and Composite Purchasing Managers Index (PMI) for February. Of greater significance to the markets, the Institute for Supply Management (ISM) will be releasing its PMI data specific to the US Services sector. With this schedule, the markets will be presented with ample data to analyze and position themselves in anticipation of the European Central Bank (ECB) rate decision on Thursday, along with other crucial US data releases towards the end of the week.
The economic calendar for Tuesday begins with the Redbook Index, scheduled for release at 13:55 GMT. The preceding reading stood at 2.7%.
On Tuesday, Federal Reserve’s Vice Chairman Michael Barr is scheduled to deliver two speeches, one at 17:00 GMT and another at 20:30 GMT.
Stock markets express dissatisfaction with the limited measures discussed during the initial day of China’s National People’s Congress. Expecting more substantial actions, markets are responding with a nearly 0.50% decline in nearly all major indices. Additionally, all three US equity futures are in negative territory ahead of the opening bell.
The 10-year US Treasury Note, a benchmark, is currently trading at approximately 4.15%, marking a decrease from earlier levels observed earlier in the week.