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Labor market data showed U.S. initial jobless claims rising to 223,000 in the week ending March 15, slightly above the prior week’s revised figure of 221,000. Meanwhile, the Philadelphia Fed Manufacturing Index fell to 12.5 in March, from 18.1 in February, though the result still beat consensus estimates of 8.5.
Geopolitical Risk Supports Dollar as Safe-Haven
Beyond trade policy, global security developments contributed to sustained demand for the dollar. Intensified drone strikes between Russia and Ukraine and renewed military activity in the Middle East have added to market uncertainty, reinforcing the dollar’s role as a preferred reserve currency.
Despite growing expectations for monetary easing, the dollar remains supported by elevated geopolitical risks and measured economic data. This combination is likely to limit downside pressure on the greenback in the near term, even as rate cut probabilities increase heading into the June FOMC meeting.
US Dollar Index (DXY) – Technical Analysis
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