Market Roundup
•Spanish 3-Month Letras Auction 2.359%, 2.431% previous
•US NFIB Small Business Optimism (Feb) 100.7,100.9 forecast,102.8 previous
Looking Ahead Economic Data(GMT)
•14:00 US JOLTS Job Openings (Jan) 7.650M forecast,7.600M previous
•17:00 US 3-Year Note Auction 4.300% previous
•20:30 US API Weekly Crude Oil Stock -1.455M previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Forecast
EUR/USD: The euro scaled a new four-month peak against the dollar on Tuesday on hopes a German defence spending deal could be struck by the end of the week. Germany's Greens Party co-leader Franziska Brantner said in an interview with Bloomberg News that her party was ready to negotiate to reach a deal for increased state borrowing to boost defence spending and revive growth.That helped lift the euro to $1.09205, its highest since November. It was last up 0.6% on the day and has gained more than 4% so far this month as Germany acts to ramp up defence spending. Immediate resistance can be seen at 1.0923 (23.6%fib), an upside break can trigger rise towards 1.0972(Higher BB).On the downside, immediate support is seen at 1.0791(38.2%fib), a break below could take the pair towards 1.0686(50%fib).
GBP/USD: Sterling rose against the dollar on Tuesday as fears of a U.S. recession drove traders away from the greenback. Market sentiment, however, remained cautious amidst ongoing uncertainties surrounding U.S. tariff policy and the outlook for global economic growth.From the UK side, the week's focus will be on Britain's monthly gross domestic product due on Friday but until then analysts said the currency would largely be influenced by moves elsewhere. The pound rose 0.4% to $1.2931, building on its 2.7% gain last week.The pound lost ground on the euro, which rose as high as 84.445 pence, its highest since late January, before paring some of its gains. Immediate resistance can be seen at 1.2936(23.6%fib), an upside break can trigger rise towards 1.3020(Higher BB).On the downside, immediate support is seen at 1.2862(March 10th low), a break below could take the pair towards 1.2784(38.2%fib)
AUD/USD: The Australian dollar edged lower on Tuesday as escalating geopolitical tensions and global trade war concerns weighed on greenack.A wave of new policies under U.S. President Donald Trump has heightened uncertainty for businesses, consumers, and investors.A survey showed on Tuesday, Australian consumer sentiment surged to a three-year high in March, driven by slowing inflation and the first interest rate cut in over four years, boosting consumer confidence, a survey showed on Tuesday.At GMT 13:09, The Australian dollar was last trading up 0.18% to $0.6288. Immediate resistance can be seen at 0.6333(38.2%fib), an upside break can trigger rise towards 0.6364(March 6th high).On the downside, immediate support is seen at 0.6253(38.2%fib), a break below could take the pair towards 0.6192(Lower BB).
USD/JPY: The dollar regained some ground after an early drop on Tuesday as calm returned to markets after the previous day's dramatic moves.Despite the short- bounce, the broader market sentiment remains bearish. The tariff policies implemented by U.S. President Donald Trump against key trading partners have caused significant volatility in global markets and heightened concerns about economic growth. Market attention is also on U.S. Consumer Price Index (CPI) on Wednesday and Producer Price Index (PPI) print on Thursday. February's CPI is expected to have climbed 0.3%.At GMT 08:23,the dollar was up 0.52% at 148.02 against Japanese Yen. Immediate resistance can be seen at 148.32(38.2%fib)an upside break can trigger rise towards 149.61(50%fib). On the downside, immediate support is seen at 146.48(23.6%fib) a break below could take the pair towards 145.60(Lower BB).
Equities Recap
European shares dipped on Tuesday as investors took a pause after a global market sell-off driven by concerns that U.S. trade policies could slow economic growth and increase recession risks.
At GMT (13:03) UK's benchmark FTSE 100 was last trading down at 0.60 percent, Germany's Dax was up by 0.15 percent, France’s CAC was down by 0.33 percent.
Commodities Recap
Gold prices rose nearly 1% on Tuesday as a weaker dollar and concerns over an economic slowdown driven by tariff wars boosted demand for the safe-haven asset.
Spot gold firmed 0.9% to $2,915.00 an ounce as of 1246 GMT. U.S. gold futures rose 0.8% to $2,921.10.
Oil prices climbed 1% on Tuesday, supported by a weaker U.S. dollar, which made crude more attractive for foreign buyers but gains were limited as concerns grew over a potential U.S. economic slowdown and the impact of trade tariffs on global growth.
Brent futures rose 73 cents, or 1.05%, to stand at$70.01 a barrel at 1116 GMT after falling in early trade. U.S. West Texas Intermediate crude futures climbed 66 cents, or 1%, to $66.69 a barrel after previous declines as well.
