Dollar index recovers mildly but stays near 2025 lows; US GDP and PCE data in focus

The dollar index witnessed a mild recovery on Thursday but still remains near 2025 lows amid uncertainty surrounding Trump tariff risks. President Trump confirms 25% tariffs on Canada, Mexico, and the EU but delays their implementation until April. However, weaker US economic that raise bets for interest rate cuts might cap the upside for the DXY. The US Dollar Index (DXY), which tracks the performance of the US Dollar against a basket of six major currencies, is seeing modest recovery at 106.57, up 0.24% on the day. Among basket currencies, both EURUSD and GBPUSD are trading lower by around 0.20% at $1.0479 and $1.2660 respectively. For the week, US PCE data and GDP data will likely provide insights into the economys momentum heading into 2025.

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