Forex Today: Focus shift to US confidence and German morale

The Greenback extended its recovery to two-week highs near 104.40 following tariff headlines over the weekend, while concerns over a potential US slowdown seem to have mitigated somewhat.

Here is what you need to know on Tuesday, March 25:

The US Dollar Index (DXY) clinched its four consecutive daily advance, surpassing the 104.00 barrier with certain conviction helped by the marked uptick in US yields across the curve. The Conference Board's Consumer Confidence gauge will be the salient event, seconded by New Home Sales, the FHFA's House Price Index, the Richmond Fed Manufacturing Index, and the API's weekly report on US crude oil inventories.

EUR/USD remained on the defensive, breaking below the 1.0800 support to hit new three-week lows around 1.0780. Market participants are expected to closely follow the release of Germany's IFO Business Climate.

GBP/USD managed to post decent gains above the 1.2900 barrier backed by firm UK data and despite the solid performance of the Greenback. The CBI Distributive Trades will be the sole release across the Channel.

USD/JPY rose strongly to three-week highs past the 150.70 hurdle, up for the third straight day. The BoJ will be at the centre of the debate with the release of its Minutes.

AUD/USD set aside four daily declines in a row and briefly managed to surpass the 0.6300 barrier. Investors in Oz will look at the 2025-26 Federal Budget.

The return of sanctions against Tehran lifted prices of the WTI past the $69.00 mark per barrel, or three-week highs.

Gold prices continued to correct from last week's all-time high, shedding ground fort the third day in a row albeit finding support around the key $3,000 zone per troy ounce. Silver prices remained almost unchanged near the $33.00 mark per ounce after three daily pullbacks in a row.