The dollar rose for a third consecutive day Friday, touching a two-week high as investors sought safe-haven protection ahead of looming U.S. tariff deadlines. Hawkish comments from Fed officials—including Christopher Waller’s criticism of slowing the Fed’s balance sheet runoff—added to market caution, reinforcing dollar demand despite some positive signals on U.S.-China trade talks.

Euro Slides on ECB Rate Cut Bets, Profit-Taking

EUR/USD fell, posting its first weekly decline since February amid softer bund yields and profit-taking from stretched bullish positions. Dovish remarks from ECB policymaker Yannis Stournaras, hinting at a potential April rate cut, added downside pressure. The pair hovered near recent lows around 1.08, awaiting fresh cues from upcoming U.S. inflation data and ongoing Ukraine ceasefire negotiations.

Sterling Weakens Ahead of U.K. Fiscal Tightening

GBP/USD slipped, pressured by expectations of fiscal tightening in Chancellor Rachel Reeves’ upcoming budget announcement. Traders anticipate downside risks for sterling as tighter policy measures could further weaken Britain’s growth outlook. Key support remains near the 200-day moving average at 1.2790-1.2800 unless the pair regains the 1.30 handle decisively.

USD/JPY Rebounds on Treasury Yields

USD/JPY reversed earlier losses to finish modestly higher, tracking a rebound in U.S. yields amid Fed hawkishness. The pair remains within a mild bullish range between 148-150, with resistance at 151. Traders await Japan’s upcoming economic data, including PMI and Tankan surveys, for further directional clues.

Aussie Under Pressure from China, Commodities

AUD/USD traded defensively, slipping below its 55-day moving average (0.6279) amid yuan weakness and falling gold prices. Despite China pledging further monetary easing, skepticism about near-term economic effectiveness weighed on the Australian dollar.

Market Snapshot

U.S. yields steepened slightly; the S&P 500 fell 0.39%. Oil gained 0.41% amid ongoing supply concerns, while gold dropped 0.77% due to dollar strength. Copper was steady, down 0.05%.

Markets remain cautious amid Fed divergence, trade tensions, and geopolitical uncertainty.