Article details
The US dollar reached new annual highs against the euro, yen, and British pound on Monday, pushing the EUR/USD, USD/JPY, and GBP/USD currency pairs to 2026 extremes before retreating. Key economic data releases, including the Personal Consumption Expenditures (PCE) price index, durable goods orders, and GDP revisions, are set to impact market sentiment. The PCE is expected to show a 0.3% monthly increase and 2.9% annual rise, while core PCE is projected at 0.4% monthly. Durable goods orders for January are forecast at 1.2%, up from -1.4% in December. These data points will test the USD's momentum ahead of critical technical levels. Traders are closely watching whether the dollar can sustain its gains or face a reversal due to mixed economic signals. The upcoming data could trigger volatility in forex markets, particularly in the majors, as investors reassess inflationary pressures and Federal Reserve policy expectations. Technical analysts warn of potential failure scenarios if the dollar's recent highs prove unsustainable, emphasizing the importance of monitoring support/resistance levels in the coming sessions.
