The dollar index rose 0.2% to around 106.5 on Wednesday, recovering some losses from the previous session as investors awaited crucial economic data to provide further clarity on the outlook. Markets are focused on the second estimate of fourth-quarter GDP growth, due Thursday, and the PCE price index report, set for Friday. The dollar faced pressure on Tuesday after data revealed US consumer confidence had dropped 7 points to an eight-month low of 98.3 in February, well below the forecasted 102.5, marking the third consecutive monthly decline. Growing economic concerns have led markets to price in two 25-basis-point rate cuts from the Federal Reserve this year. Meanwhile, escalating tariff threats from US President Donald Trump have added to market unease, with Trump announcing that tariffs on Canada and Mexico "will go forward" once the one-month delay period expires next week.
Source: Trading Economi
