USD: Supported by data and higher Oil – Danske Bank

According to Danske Research Team, the Dollar is consolidating recent gains, helped by higher Oil prices and renewed US–Iran tensions. The analysts point to a busy US data slate, including February flash PMIs, Q4 flash GDP and December PCE inflation, which could influence Dollar dynamics over the coming days.

US data and geopolitics back Greenback

"In the US, February flash PMIs, Q4 flash GDP, and December PCE inflation are due for release."

"For flash PMIs it is expected that both manufacturing and services PMIs will increase in February with manufacturing PMI expected at 52.6 (Jan: 52.4) and services PMI at 53.0 (Jan: 52.7)."

"For flash GDP, consensus expects the seasonally adjusted growth in 2025Q4 at 3.0% q/q AR, which is a slowing from the extraordinarily strong growth in Q3 at 4.4% q/q."

"Finally, the PCE inflation for December is expected to show unchanged headline at 2.8% y/y and a small rise in core to 2.9% y/y."

"EUR/USD has dropped well below the 1.18 level as the USD continues to consolidate its gains this week with a combination of factors having supported the dollar including higher oil prices amid renewed US-Iran tensions - with Brent trading at year-to-date highs above USD 70/bbl."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)