Greenback Gains Grip

London: 16 April 2024 (TraderMade): The US Dollar (USD) is on a tear, surging against major currencies on a wave of positive US data, safe-haven buying, and weakness elsewhere.

The US Dollar Index (USDX) surged from around 104 to 106.06 over the last week.

Strong US Data & Safe-Haven Appeal

Robust US retail sales data bolstered confidence in the US economy, making the USD more attractive. Rising geopolitical tensions prompted investors to seek refuge in the perceived stability of the USD.

Emerging Markets, Yen Struggle

Emerging market currencies plunged to 2024 lows as the USD strengthened. The Japanese Yen (JPY) also weakened due to concerns about Japan's monetary policy.

British Pound Tumbles

The British Pound (GBP) hit its lowest level against the USD since November in anticipation of weak UK jobs data.

Dollar's Dominance to Continue

The USD rally is expected to persist as investors monitor geopolitical developments and key economic data releases, including China's.