Market Roundup
• US Export Price Index (MoM) (Feb) 0.1%, -0.2% forecast, 1.3% previous
• US Export Price Index (YoY) (Feb) 2.1%, 2.7% previous
• US Housing Starts (Feb) 1.501M, 1.380M forecast, 1.350M previous
• US Housing Starts (MoM) (Feb) 11.2%, -11.5% previous
• US Import Price Index (YoY) (Feb) 2.0%, 1.6% forecast, 1.9% previous
• US Import Price Index (MoM) (Feb) 0.4%, -0.1% forecast, 0.4% previous
•Canada Common CPI (YoY) (Feb) 2.5%, 2.2% forecast, 2.2% previous
•Canada Core CPI (MoM) (Feb) 0.7%, 0.4% previous
•Canada Core CPI (YoY) (Feb) 2.7%, 2.1% previous
•Canada CPI (MoM) (Feb) 1.1%, 0.6% forecast, 0.1% previous
•Canada CPI (YoY) (Feb) 2.6%, 2.1% forecast, 1.9% previous
•Canada Median CPI (YoY) (Feb) 2.9%, 2.7% forecast, 2.7% previous
•Canada Trimmed CPI (YoY) (Feb) 2.9%, 2.8% forecast, 2.7% previous
•US Redbook (YoY) 5.2%, 5.7% previous
•US Capacity Utilization Rate (Feb) 78.2%, 77.8% forecast, 77.7% previous
•US Industrial Production (YoY) (Feb) 1.44%, 1.92% previous
•US Industrial Production (MoM) (Feb) 0.7%, 0.2% forecast, 0.3% previous
•US Manufacturing Production (MoM) (Feb) 0.9%, 0.3% forecast, 0.1% previous
•US 52-Week Bill Auction 3.945%, 4.050% previous
•US Atlanta Fed GDPNow (Q1) -1.8%, -2.1% forecast, -2.1% previous
•US 20-Year Bond Auction 4.632%, 4.830% previous
Looking Ahead Economic Data(GMT)
•03:00 Japan BoJ Interest Rate Decision 0.50% forecast, 0.50% previous
•04:30 Japan Capacity Utilization (MoM) (Jan) -0.2% previous
•04:30 Japan Industrial Production (MoM) (Jan) -1.1%forecast, -0.2% previous
Looking Ahead Events And Other Releases(GMT)
• 02:30 Japan BoJ Monetary Policy Statement
•06:30 Japan BoJ Press Conference
Currency Summaries
EUR/USD: The euro steadied near a five-month high on Tuesday after German lower house passes fiscal reform bill.The German parliament's approval of plans for a massive spending surge throws off decades of fiscal conservatism in hopes of reviving economic growth and scaling up military spending for a new era of European collective defence.The euro also found support earlier after data showed German investor morale improved more than expected in March. Investors also awaited details from a phone call between U.S. President Donald Trump and Russian President Vladimir Putin as the U.S. attempts to convince Moscow to accept a ceasefire in its war with Ukraine. The euro was 0.2% higher at $1.0945, after hitting $1.0954 earlier in the session, its highest since October 10. Immediate resistance can be seen at 1.0952 (23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0804(38.2%fib), a break below could take the pair towards 1.0693(50%fib).
GBP/USD: The British pound strengthened on Tuesday as investors positioned for key central bank meetings, including the Bank of England’s policy decision. The BoE is expected to keep interest rates on hold Thursday, maintaining its gradual approach amid uncertainty from Trump’s trade war and mixed UK economic data. While domestic economic updates have been limited since the BoE’s February 6 rate cut, Trump’s shifting tariff policies have rattled financial markets and clouded the global inflation outlook. Meanwhile, Britain's Labour government announced plans to cut more than five billion pounds($6.48 billion) from its welfare budget by 2029/30, seeking to tame a sharply rising bill despite some party unrest. Immediate resistance can be seen at 1.3012(23.6%fib), an upside break can trigger rise towards 1.3072(Higher BB).On the downside, immediate support is seen at 1.2902(March 17th low), a break below could take the pair towards 1.2873(38.2%fib).
USD/CAD: The Canadian dollar weakened against the U.S. dollar on Tuesday, pulling back from a 12-day high as falling equity markets and investor caution overshadowed stronger-than-expected inflation data. Canada's annual inflation rate climbed to 2.6% in February, exceeding the 2.2% forecast, driven by the expiration of a mid-month sales tax break and broader price increases.Investors see a 38% chance of a Bank of Canada interest rate cut at its next policy decision on April 16, slightly less than before the data. The price of oil , one of Canada's major exports, settled 1% lower at $66.90 a barrel as Ukraine peace talks offset worries about Mideast instability. Immediate resistance can be seen at 1.4322 (Daily high), an upside break can trigger rise towards 1.4362 (50%fib).On the downside, immediate support is seen at 1.4266(38.2%fib), a break below could take the pair towards 1.4200 (Lower BB).
USD/JPY: The dollar strengthened on Tuesday as Japanese yen weakened as investors focus shifted Bank of Japan rate decision.. The Bank of Japan is expected to keep interest rates steady on Wednesday as policymakers assess the impact of potential U.S. tariffs on Japan’s export-driven economy. Markets will closely watch Governor Kazuo Ueda’s post-meeting remarks for hints on the timing of the next rate hike, especially amid stable domestic data and trade uncertainty under Trump’s policies.Having raised rates in January, the BOJ is likely to maintain its short-term policy rate at 0.5% following its two-day meeting. The central bank is also expected to reaffirm its view that Japan’s economy is recovering moderately, supported by rising wages and steady consumer spending.. The dollar strengthened against the Japanese yen by 0.17% to 149.47. Immediate resistance can be seen at 149.94(Daily high) an upside break can trigger rise towards 150.69(50%fib). On the downside, immediate support is seen at 149.22(38.2%fib) a break below could take the pair towards 148.25(March 17th low).
Equities Recap
European equities ended higher on Tuesday after parliament approved a major spending boost, while investors awaited updates on a U.S.-Russia call regarding a potential Ukraine peace deal.
UK's benchmark FTSE 100 closed up by 0.29 percent, Germany's Dax ended up by 0.98 percent, France’s CAC finished the day up by 0.50 percent.
Wall Street turned lower on Tuesday as Israeli airstrikes on Gaza revived geopolitical jitters and the U.S. Federal Reserve gathered to discuss monetary policy amid growing economic uncertainty.
Dow Jones closed down by 0.62 %percent, S&P 500 closed down by 1.07% percent, Nasdaq settled down by 1.71% percent.
Commodities Recap
Gold rose 1% to a new record high on Tuesday, staying above $3,000/oz, as Middle East tensions and trade uncertainties from Trump’s tariff plans boosted safe-haven demand.
Spot gold hit a peak of $3,038.26 per ounce and by 12:00 p.m. ET (1600 GMT) was up 1.05% at $3,032.96 an ounce. Prices climbed above $3,000 for the first time on March 14.
Oil prices fell about 1% on Tuesday as Trump and Putin discussed ending the Ukraine war, potentially easing sanctions on Russian fuel exports.
Brent futures fell 51 cents, or 0.7%, to settle at $70.56 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 68 cents, or 1.0%, to settle at $66.90.
