🗓️ Dollar Buying Continues but Pauses in London – Middle East Risk and U.S. Data in Focus
📌 Daily Summary
Dollar strength remains supported by solid U.S. fundamentals. However, upside momentum has paused during the London session.
The broader tone this week has favored USD buying, though today’s price action shows signs of short-term consolidation.
Middle East developments and U.S. economic releases remain the key drivers.
🇺🇸 Dollar Overview
▶ Drivers Behind Dollar Strength
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U.S. industrial production and housing data beat expectations
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FOMC minutes reaffirmed a “higher-for-longer” rate stance
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U.S. Treasury yields moved higher
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Rising Middle East tensions → higher oil prices → renewed inflation concerns
👉 Reduced rate-cut expectations = continued dollar advantage.
▶ London Session Price Action
Dollar Index (DXY)
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Tokyo afternoon: 97.777 (highest since February 6)
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After London open: pulled back to the 97.57 area
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Current: 97.62 (-0.08%)
While the broader uptrend remains intact,
profit-taking in London has capped immediate upside.
🇯🇵 Yen Overview
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Intervention concerns have slightly faded
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Japanese Bankers Association head suggested additional BoJ rate hikes could come in March–April
However, the current balance remains:
U.S. yield advantage > BoJ tightening expectations
The yen’s independent strength remains limited.
🛢 Geopolitical Risk
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Ongoing U.S.–Iran tensions
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Oil prices rising
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Renewed inflation fears
👉 Safe-haven demand continues to support the dollar.
📊 Today’s U.S. Economic Data
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Initial jobless claims
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Trade balance
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Philadelphia Fed index
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Leading economic index
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Pending home sales
If data continues to surprise to the upside,
another leg higher in the dollar is possible.
🎙 Speakers & Events
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ECB officials speaking
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Fed speakers: Bostic, Bowman, Kashkari
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U.S. 30-year TIPS auction
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Weekly U.S. crude inventories
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Walmart earnings
📈 Current Market Structure
| Factor | Impact |
|---|---|
| Strong U.S. data | ◎ USD bullish |
| Middle East risk | ◎ USD bullish |
| BoJ hike expectations | △ Yen support |
| London session pullback | △ USD pause |
🔎 What to Watch Tomorrow
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Strength/weakness in U.S. data
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Oil price direction
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Middle East headlines
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Whether DXY can retest the 98 level
🧭 Conclusion
The dollar remains structurally strong.
However, short-term London consolidation is natural after recent gains.
The broader environment still favors buying USD on dips.
