The US Dollar experienced a slight depreciation against major currencies on Tuesday, amidst ongoing trade tensions. Recent positive Nonfarm Payrolls data and a rebound in US Treasury yields had previously strengthened the Dollar. The US Dollar Index (DXY), currently trading above 103.20, exhibits signs of consolidation, albeit marginally lower intraday as risk-on sentiment attempts to gain traction. While risk-off sentiment had previously exerted downward pressure on the Dollar, the robust NFP figures released on Friday have facilitated a recovery in the DXY. The sustainability of this recovery will be contingent upon forthcoming US economic data. The economic calendar includes the release of the National Federation of Independent Business (NFIB) Business Optimism Index for March. Given the prevailing tariff environment, market participants will closely scrutinize this indicator for insights into US business sentiment, as it is often considered a leading economic gauge.
