Market Roundup
• Italian Monthly Unemployment Rate (Jan) 6.3%, 6.2% forecast,6.4% previous
•S&P Global Greece Manufacturing PMI (Feb) 52.6 ,52.8 previous
•UK 30-Year Treasury Gilt Auction 5.104% ,5.198% previous
•Spanish 12-Month Letras Auction 2.173%, 2.221% previous
•Spanish 6-Month Letras Auction 2.255%, 2.355% previous
•Greek Unemployment Rate (Jan) 8.7% 9.3% previous
•EU Unemployment Rate (Jan) 6.2%, 6.3% forecast,6.2% previous
Looking Ahead Economic Data(GMT)
•13:00 US Redbook (YoY) 6.2% previous
•14:00 NZD GlobalDairyTrade Price Index -0.6% previous
•14:00 USD Milk Auctions 4,370.0 previous
•15:00 USD IBD/TIPP Economic Optimism (Mar) 53.1forecast, 52.0 previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Forecast
EUR/USD: The euro steadied on Tuesday as greenback weakened after the U.S. imposed steep tariffs on Canada, Mexico, and China, escalating trade tensions with its top three trading partners.Tariff actions came hours after U.S. President Donald Trump said that all three countries had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the U.S.Last week, Trump floated a 25% tariff on cars and other goods from the European Union.China swiftly retaliated by announcing 10%-15% levies on certain U.S. imports from March 10, aggravating a trade war between the world's top two economies.Investors are also keeping an eye out for the European Central Bank policy meeting on Thursday, with traders pricing in another 25 basis point cut. The ECB has cut rates five times already since last June in a nod to quickly slowing inflation. Immediate resistance can be seen at 1.0558(23.6%fib), an upside break can trigger rise towards 1.0598(Higher BB).On the downside, immediate support is seen at 1.0483(38.2%fib), a break below could take the pair towards 1.0421(50%fib).
GBP/USD: The British pound edged higher against the U.S. dollar on Tuesday as traders assessed Trump’s tariffs on Canada, Mexico, and China amid signs of a slowing U.S. economy. Trump’s 25% tariffs on Mexican and Canadian goods took effect Tuesday at 05:01 GMT, alongside a hike in Chinese duties to 20%.The dollar extended its sharp decline from Monday after weak U.S. manufacturing data highlighted corporate concerns over tariffs and echoed drops in other sentiment indicators. Sterling rose to $1.2741, a near three-month high, and was last up 0.18%. Immediate resistance can be seen at 1.2764(23.6%fib), an upside break can trigger rise towards 1.2825(Higher BB).On the downside, immediate support is seen at 1.2681(Daily low), a break below could take the pair towards 1.2630(38.2%fib)
AUD/USD: The Australian dollar edged higher on Tuesday as the U.S. dollar weakened amid concerns over slowing growth and tariff impacts on the U.S. economy. Trump’s 25% tariffs on Mexican and Canadian goods took effect, along with a hike in Chinese duties to 20%. In retaliation, China announced additional 10-15% tariffs on U.S. imports starting March 10, while Canada’s countermeasures took effect Tuesday, with Mexico expected to follow suit. Trade concerns overshadowed Australian data showing a January retail sales rebound and stronger-than-expected net export contributions to Q4 economic growth.The Reserve Bank of Australia's February meeting minutes signaled a hawkish stance, cautioning that further rate cuts were not guaranteed. At GMT13:23, The Australian dollar was last trading up 0.09% to $0.6229. Immediate resistance can be seen at 0.6252(38.2%fib), an upside break can trigger rise towards 0.6308(50%fib).On the downside, immediate support is seen at 0.6183(38.2%fib), a break below could take the pair towards 0.6172(Lower BB).
USD/JPY: The dollar edged lower against the yen on Tuesday as demand for safe-haven assets surged amid growing concerns over tariff risks. Trump said on Monday he told leaders of Japan and China they cannot continue to reduce the value of their currencies as doing so would be unfair to the United States. Trump’s criticism of a weak yen and uncertainty on how his tariff threats could affect global growth may complicate the Bank of Japan's decision on how soon to raise interest rates.Japan is the latest to emerge as a potential tariff target, with Trump saying on Monday that he lambasted unspecified Japanese leaders by phone for killing their currency . Immediate resistance can be seen at 149.60(Daily high) an upside break can trigger rise towards 150.11(38.2%fib). On the downside, immediate support is seen at 148.17(23.6%fib) a break below could take the pair towards 147.25(Lower BB).
Equities Recap
European shares joined a global market selloff on Tuesday as U.S. tariffs on Canada, Mexico, and China took effect, sparking concerns that Europe could face similar levies.
At GMT (13:19) UK's benchmark FTSE 100 was last trading down at 0.73 percent, Germany's Dax was down by 2.69 percent, France’s CAC finished was down by 1.82 percent.
Commodities Recap
Gold prices extended gains on Tuesday, fueled by safe-haven demand as trade conflicts escalated following Trump’s new tariffs on the U.S.'s top three trading partners.
Spot gold rose 0.9% to $2,919.44 an ounce by 1154 GMT, up for a second straight session. Bullion has gained 10% so far this year and hit a record high of $2,956.15 on February 24.
Oil prices extended losses on Tuesday after reports that OPEC+ will proceed with an output increase in April, coupled with the implementation of U.S. tariffs on Canada, Mexico, and China, and Beijing's retaliatory measures.
Brent futures were down $1.27, or 1.8%, at $70.35 a barrel by 1300 GMT while U.S. West Texas Intermediate (WTI) crude was off $1.10 cents, or 1.6%, at $67.27.
