The US dollar remained under pressure on Wednesday, struggling to gain traction as an improved risk sentiment dominated global markets. Optimism over easing recession fears and solid corporate earnings boosted riskier assets, weakening the greenback’s safe-haven appeal.
Major currency pairs showed relatively muted movements, with traders adopting a cautious stance ahead of high-impact US economic data, including retail sales and industrial production figures. The data is expected to provide clearer insights into the Federal Reserve’s next policy steps and the broader health of the US economy.
The euro and British pound held steady against the dollar, supported by resilient economic data from the Eurozone and the UK. Meanwhile, commodity-linked currencies like the Australian and New Zealand dollars benefited from the upbeat market mood, extending their recent gains.
Looking ahead, US economic reports will likely drive short-term market direction. Analysts suggest that stronger-than-expected data could reignite demand for the dollar, while weaker readings may further weigh on the greenback, reinforcing its recent downward trajectory.
