US Dollar Index Hits Fresh 2024-High Above 105.50 Amid Mixed Data Releases

In the European session on Friday, the US Dollar (USD) strengthened against its major counterparts, propelling the US Dollar Index to a new high for 2024, surpassing the 105.50 mark. The economic docket for the United States includes the release of Export Price Index and Import Price Index data for March, along with the University of Michigan’s preliminary Consumer Sentiment Index for April.

While mixed macroeconomic data from the US hindered the USD’s ability to extend Wednesday’s gains driven by robust inflation data, supportive comments from Federal Reserve (Fed) officials helped bolster the currency. Additionally, escalating geopolitical tensions provided further impetus to the safe-haven appeal of the USD. Late Thursday, a US official noted expectations of potential attacks by Iran on Israel, warning against further escalation in the Middle East conflict, according to Reuters.

Meanwhile, following a decline on Wednesday, Gold experienced a bullish surge, gaining over 1.5% on Thursday. XAU/USD continued its upward trajectory, reaching a new record high and nearing the $2,400 mark.

In the aftermath of its April policy meeting, the European Central Bank (ECB) maintained its monetary policy settings unchanged, as anticipated. Despite EUR/USD partially recovering during Thursday’s American trading hours, it faced renewed downward pressure on Friday due to dovish remarks from ECB officials, with the pair trading at its lowest level since December, below 1.0700.

In the UK, the Office for National Statistics reported that real Gross Domestic Product (GDP) expanded by 0.1% on a monthly basis in February, matching market expectations. However, GBP/USD remained under pressure following the data, trading at a new low for 2024 near 1.2500.

Meanwhile, USD/JPY remained relatively stable above 153.00 early on Friday, with the Japanese Yen benefiting from a cautious risk sentiment. Additionally, investors appeared hesitant to speculate on further upside in the pair amid growing expectations of potential intervention by the Bank of Japan.

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