On Wednesday, the dollar index (DXY00) fell by 0.16%, influenced by a stronger yuan reaching a 2.75-year high and comments from President Trump during his State of the Union address regarding trade tariffs. The decline was partially offset by a weakened yen, which hit a 2-week low against the dollar.
German Q4 GDP remained unchanged at +0.3% quarter-over-quarter and +0.6% year-over-year, while private consumption was revised up to +0.5%. However, the German consumer confidence index dropped to -24.7, against expectations of -23.0. In the precious metals market, April COMEX gold rose by 0.96%, and March COMEX silver increased by 3.98%, supported by safe-haven demand amid U.S. trade uncertainties and rising geopolitical tensions.
The swaps market shows a 2% possibility of a -25 basis point rate cut by the Federal Reserve at the next policy meeting on March 17-18. Meanwhile, expectations for interest rate hikes by other central banks are noted, with speculation of a 25 basis point increase by the Bank of Japan in 2026.
