The dollar index rose for a fourth straight session Monday, hitting a two-week high after robust U.S. S&P Global services PMI data boosted confidence in economic resilience. Surging input prices raised fresh inflation concerns, complicating the Fed's policy outlook ahead of quarter-end portfolio adjustments and tariff-related hedging flows.

Euro Under Pressure but Holds 1.08 Level

EUR/USD declined modestly for the fourth consecutive day, finding dip-buyers near the key 1.08 psychological level. Eurozone business activity reached a seven-month high, primarily driven by services, partially cushioning the currency’s fall. Technically, a break below 1.0766 risks further downside toward the 200-day moving average at 1.0732.

Sterling Edges Higher Ahead of Key Events

GBP/USD initially strengthened on upbeat UK services PMI data, marking a seven-month peak, before surrendering gains amid the stronger dollar. Investors await Wednesday’s UK fiscal update and inflation report, both critical for shaping sterling’s near-term outlook.

Yen Weakens Sharply as USD/JPY Nears 150

USD/JPY surged toward 150, driven by rising U.S. Treasury yields and positive dollar sentiment, reinforcing carry-trade demand. Traders eye resistance at February’s 150.93 low, awaiting key Japanese data this week—including services PPI and Tankan surveys—for fresh policy clues.

Risk Appetite Improves; Commodities Mixed

U.S. stocks gained, with the S&P 500 up 1.64% on strength in tech and consumer discretionary sectors. Treasury yields rose 6–9 bps across the curve, while oil advanced 1.36% amid geopolitical tensions. Conversely, gold fell 0.53%, pressured by dollar strength, and copper eased 0.76%.

Markets remain cautious, balancing strong U.S. data and geopolitical uncertainties ahead of critical upcoming macroeconomic releases.