FX.co ★ DXY Climbs to 3-Week High

The dollar index surged past 104.3 on Wednesday, marking a three-week high, as it was buoyed by lackluster economic data and persistent uncertainty regarding US trade policy. Recent statistics revealed that new orders for non-defense capital goods, excluding aircraft—a crucial indicator of business investment—unexpectedly declined following a trio of monthly increases. Furthermore, consumer confidence fell on Tuesday to its lowest point in over four years, underscoring mounting concerns among households. Adding to the market's wariness, investors are eagerly anticipating details about potential new US tariffs, with President Trump poised to unveil measures targeting the automotive, semiconductor, and pharmaceutical sectors next week. Amidst these numerous uncertainties, traders are adopting a defensive stance, thereby bolstering the dollar's role as a safe-haven asset. Attention is also fixed on Friday’s PCE price index report, which is the Federal Reserve’s preferred measure of inflation.