Forex News Timeline

Macro funds are (finally) waking up to the silversqueeze you can buy into, TDS' Senior Commodity Strategist Daniel Ghali notes. London liquidity remains severely constrained "Our advanced positioning analytics point to a continued rise in Silver positioning from macro funds last week, lifting their net length towards its highest levels since 2018 with substantial dry-powder still remaining. Speculative interest in Silver has been the missing link for the performance of flat prices, and growing interest over the last two weeks suggests that a break north of $34-35/oz will attract more capital inflows." "This is consistent with the timing for a countdown towards a silversqueeze, with historical precedents and academic research corroborating our view for additional upside convexity over the coming months. London liquidity remains severely constrained, even as dislocations have subsided in gold, as the US continues to pull in metal from the world." "Lease rates remain extremely elevated and even though physical demand remains limited, speculative inflows are finally starting to appear. In most scenarios for prices, we still expect a drift higher in CTA positioning over the coming sessions, but the fireworks will come from additional discretionary trader inflows."

Business activity in the US private sector continued to expand in March.US Dollar Index clings to small daily gains above 104.00.The economic activity in the US' private sector expanded at an accelerating pace in March, with the S&P Global Composite PMI rising to 53.5 (preliminary) from 51.6 in February. In the same period, the Manufacturing PMI declined to 49.8 from 52.7, falling short of the market expectation of 51.9. On a positive note, the Services PMI climbed to 54.3 from 51. Commenting on the survey's findings, "a welcome upturn in service sector activity in March has helped propel stronger economic growth at the end of the first quarter," noted Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. "However, the survey data are indicative of the economy growing at an annualized 1.9% rate in March and just 1.5% over the quarter as a whole, pointing to a slowing of GDP growth compared to the end of 2024," Williamson added. Market reaction The US Dollar Index edged higher with the immediate reaction to PMI data and was last seen rising 0.1% on the day at 104.25.

Macro funds played a role in last week's melt-up in Gold prices, TDS' Senior Commodity Strategist Daniel Ghali notes. Recent liquidations are likely related to constrained risk-budgets "Our advanced positioning analytics corroborates our view that macro funds played a role in last week's melt-up in Gold prices, suggesting that recent liquidations likely related to constrained risk-budgets, as opposed to a directional view on Gold." "Considering this cohort's net position still remains at levels broadly consistent with early-2024, and that prices continue to hold north of $3000/oz, we think their repleted warchest will chase the run higher in prices, fueling more FOMO into the yellow metal. It's still 'heads I win, tails you lose', but it's the other side of the coin that is now screaming FOMO."

UK PMI data for March were mixed. Manufacturing output weakened to 44.6 (from 46.9 and against forecasts for a rise to 47.2), Scotiabank's Chief FX Strategist Shaun Osborne notes. Technicals look bullish "Services and Composite data strengthened impressively and beat expectations, however. Strength in the service sector in particular suggests the economy may be picking up some renewed momentum after a period of stagnation. UK CPI data mid-week are expected to reflect still slow progress on cooling inflation, reinforcing the cautious pace of BoE easing we are likely to see in the months ahead, however." "GBP gains are developing strongly on the session. A solid rebound from the upper 1.28s has pushed through Friday’s intraday peak after the pound earlier set a minor new low. Price is carving out a bullish outside range reversal, in effect, countering the bearish price action that developed late last week. Look for gains to extend to the low 1.30s. Resistance is 1.3015 and 1.3120."

Stronger than forecast French PMI data across the board plus slightly disappointing German Services and Composite data resulted in some mixed Eurozone PMIs for March—an improvement in Manufacturing and the Composite readings over February but slightly weaker Services, Scotiabank's Chief FX Strategist Shaun Osborne notes. European PMIs suggest resilience "The Eurozone economy remains resilient in the face of tariff risks, it would seem. EUR/USD also remains quite resilient, with dips to the low 1.08 area still attracting solid bid interest." "EUR support around 1.08 remains resilient. Minor intraday gains are extending above short-term trend resistance at 1.0850 at writing which may prompt a further push back to the upper 1.08s. Key resistance remains 1.0950/60 ahead of 1.12. Support around 108 protects against a drop back to the low 1.07s."

The Canadian Dollar (CAD) is modestly firmer on the session but still well within recent trading ranges, Scotiabank's Chief FX Strategist Shaun Osborne notes. Carney calls April 28th election "The USD remains strongly—around two standard deviations—overvalued versus our equilibrium estimate (1.4143), with tariff uncertainty likely accounting for much of the USD’s strength. The USD still looks to be overpriced for the tariff regime that is in place currently and what might yet emerge, especially considering the news that the White House may scale back the scope of the April 2 tariff announcement." "The CAD is unlikely to pick up much ground until tariff risks are clearer. The widely expected election call was made at the weekend, with PM Carney going to the country on April 28th." "Technical signals are leaning modestly USD-bearish after the USD’s failure at 1.44 last Thursday. A clear rejection at the figure leaves spot pushing below 1.4340/50 support this morning which may see USD losses extend to test trend support at 1.4300/10. A clear break below here should see USD losses to the mid-1.42s. Resistance is (firm) at 1.4400/10 and 1.4520/30."

The US Dollar (USD) is mixed to slightly lower overall as FX markets continue to consolidate. Risk appetite has perked up a little amid some signs from the White House that the April tariff announcement will be flexible, perhaps more limited in range and may not include industry-specific levies—at least not for now. It is unclear what will happen with border tariffs on Mexico and Canada, Scotiabank's Chief FX Strategist Shaun Osborne notes. USD drifts as White House suggests flexible approach to tariffs "The focus on a (perhaps) more limited range of reciprocal tariffs is good news for the global economy and markets, reflected in the positive start to the week for stocks, but there is a lot of unknowns around this apparent shift, which has nothing at all to do with the slump in the stock markets in the past few weeks, and the situation remains fluid. An announced trip to Greenland by a senior US delegation this week might be a distraction for the news cycle from the shifting tariff focus." "The USD may not benefit too much until tariff risks are clearer. Price trends suggest that USD is consolidating recent losses and the longer the sideways range trade extends, the harder it may be for the USD to recover meaningfully. It stands to reason that if the White House is seeking a reset of the global trade order, a stronger USD might not be part of the solution." "On the charts, the DXY gains remain capped in the low 104 zone and slightly softer intraday price trends suggest some risk of the index drifting back a little more in the session ahead. Support is 103.75 and—major—103.25."

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Overall, the pair is expected to stay above 1.08 for now after United States (US) officials commented on Monday that the upcoming reciprocal tariffs will rather be targeted by sector and country, not at all simply broad-based as US President Donald Trump had originally announced.  Meanwhile, on the economic data front, the preliminary Purchasing Managers Index (PMI) for March is being released on Monday. In the old continent, S&P Global and Hamburg Commercial Bank (HCOB) PMIs have been upbeat in France, beating estimates and February's readings in both the manufacturing and services sectors, but they still signal contraction. Meanwhile, results for Germany and the overall Eurozone have been mixed. The focus now shifts to the US S&P Global PMI data at 13:45 GMT.  Daily digest market movers: Focus on PMIsEuropean PMI data has already been released: For France, upbeat numbers with the Services component coming in at 46.6, beating the 46.3 expected and the previous reading of 45.3. The Manufacturing sector component jumped to 48.9, coming from 45.8 in February and beating the 46.2 expected. In Germany, the Services sector reading fell to 50.2, missing the 51.4 estimate and below the previous 51.1. The Manufacturing component popped to 48.3, beating the previous 46.5 and above the consensus of 47.7. In the overall Eurozone, Services PMI decreased to 50.4 from 50.6 previously, falling below the 51.0 expected. However, the Manufacturing reading accelerated to 48.7 from 47.6 in February, beating the 48.0 expected.  At 12:30 GMT, the Chicago Fed National Activity Index for February is due. No forecast is available, with the previous reading at -0.03. At 13:45, the US preliminary PMI data for March is due by S&P Global. The Services PMI is expected to marginally tick up to 51.2, coming from 51.0. Manufacturing reading is expected to decline to 51.9 from 52.7. At 19:10 GMT, Vice Chair for Supervision of the Board of Governors of the Federal Reserve System Michael Barr will speak in a moderated discussion on small business lending at an event hosted at Advancing Innovation and Fairness in Small Business Finance, Washington, D.C. Equities are rallying on Monday after the news that the upcoming reciprocal tariffs might be less severe than initially announced. In Europe, all indices are up near 0.5%, while US futures see the Nasdaq lead over 1% ahead of the opening bell.  The CME Fedwatch Tool projects a 85.1% chance for the Federal Reserve (Fed) to keep interest rates unchanged in the May meeting while there is a slim 14.9% chance for a rate cut.  The US 10-year yield trades around 4.289% and is looking for direction after the steep correction from last week. Technical Analysis: A sign on the wall? The EUR/USD pair is stuck in a very tight range on the weekly chart. The fact that EUR/USD closed below the 200-week Simple Moving Average (SMA) at 1.0854 last week means that a return to 1.10 is not in the cards immediately. On the other hand, the support from the 100-week SMA at 1.0782 and the 55-week SMA at 1.0740 reveal that a turnaround to 1.05 is not set to materialize quickly either.  On the upside, 1.1000 is the key level to look out for. Once that level is breached, the pair enters the famous 1.1000-1.1500 range, where it often tends to stay for quite some time. First, of course, the 200-week SMA at 1.0854 needs to be reclaimed.  On the downside, the support from the 100-week SMA at 1.0782 and the 55-week SMA at 1.0740 should be enough to support any selling pressure EUR/USD might face. In case it does not hold, 1.0667 and 1.06 are the next targets to the downside.  EUR/USD: Weekly Chart US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.  

AUD/USD is consolidating above last week’s lows near 0.6258, BBH's FX analysts report. Markets continue to fully price-in the next 25bps cut in July "Australia reported firm preliminary March PMIs. The composite PMI improved to a seven-month high at 51.3 vs. 50.6 in February. Manufacturing surged to a 29-month high at 52.6 vs. 50.4 in February and services rose to a two-month high at 51.2 vs. 50.8 in February." "Importantly, the rate of private sector job creation increased for a third straight month amidst the solid rise in new work. This suggests that Australia’s poor February labor market data may be an outlier rather than a sign of broader weakness. Cash rate futures continue to fully price-in the next 25bps cut in July with 70% odds it will occur at the May meeting."

Japanese Yen (JPY) is underperforming most major currencies and USD/JPY is up near technical resistance at 150.00, BBH's FX analysts report. BoJ is unlikely to tighten the policy by more than is currently priced "Private sector activity in Japan deteriorated in March. The composite PMI fell from a six-month high of 52.0 in February to 48.5 in March, to signal a renewed reduction in business activity. The services PMI fell to a three-year low at 49.5 vs. 53.7 in February and the manufacturing PMI plunged to a multi-year low at 48.5 vs. 52.0 in February." "Meanwhile, Japan Finance Minister Katsunobu Kato cautioned that 'Japan has not overcome deflation'. Kato pointed out that rising prices are still being driven by a weak yen and high commodity costs rather than a virtuous cycle of rising wages and consumer demand." "Bank of Japan (BoJ) is unlikely to tighten the policy by more than is currently priced which is a headwind for JPY. The swaps market continues to imply less than 50bps of rate hikes over the next twelve months."

Brent recently revisited the low of last September at $68.70 resulting in a brief rebound, Societe Generale's FX analysts report. Break below $70.00 can highlight possibility of one more down leg "It is now challenging a multi-month descending trend line at $72.75 which could be an interim resistance. It will be interesting to see if Brent can establish beyond this hurdle; this cross is crucial for confirming extension in ongoing rebound." "Inability to overcome $72.75 can lead to persistence in decline. Break below last week low of $70.00 could highlight possibility of one more down leg."

USD/JPY inched higher. Data and BoJ policy may take a back seat for now as the focus shifts to Trump’s reciprocal tariffs on 2 Apr. Pair was last seen trading at 149.65 levels., OCBC's FX analysts Frances Cheung and Christopher Wong note. Slight rebound risk not ruled out in the near term "Earlier, Trump had ordered his administration to consider imposing reciprocal tariffs on numerous trading partners, singling out Japan and South Korea as nations that he believes are taking advantage of the US. We had also flagged that Japan may be at risk of being hit by US reciprocal tariffs as Japanese cars are the top 5 most popular in US. (Japan shipped 1.37mio vehicles to US in 2024, accounting for 28% of Japan’s exports to US)." "Currently, US imposes a 2.5% tariff on imported Japanese cars and this tariff rate may rise, leading to a potential demand hit for Japanese cars. There have been chatters of production adjustments or supply chain shifts in attempt to avert being hit by reciprocal tariff adjustment, but it remains uncertain if this would be useful. In terms of agricultural products, Japan also has a high tariff rate of 204.3% for rice and 23.3% for meat. The risk is a direct tariff hit on Japanese goods that can potentially put a downward pressure on JPY." "Also not forgetting JPY dividend seasonality trends that may weigh on JPY in the near term. Bullish momentum on daily chart intact while RSI rose. Slight rebound risk not ruled out in the near term but bias to sell rallies. Death cross appears to be in the making (50 cuts 200 DMA to the downside). Resistance at 150, 151.50 (38.2% fibo retracement of Sep low to Jan high) and 152 (50, 200 DMAs). Support at 148.30, 147 levels (61.8% fibo)."

EUR/GBP eased back below 0.840 last week following a modestly hawkish BoE meeting and broader unwinding of EUR longs, ING's FX analyst Francesco Pesole notes. Upside risks to EUR/GBP extending beyond the recent 0.845 highs "EUR/GBP eased back below 0.840 last week on a modestly hawkish Bank of England meeting and broader unwinding of EUR longs. We are bullish on the pair this week."  "Spending cuts should be enough to meet the fiscal rule. However, the gilt market will be on the lookout for any missteps in the very tight room for fiscal manoeuvring, and the bar for a negative reaction either in bonds or a meaningful repricing lower in growth expectations both have the potential of hitting sterling. We see upside risks to EUR/GBP extending beyond the recent 0.845 highs this week." "We also have inflation data in the UK this week, but we don’t expect it to be a major market-moving event, with services CPI expected to have remained close to 5% in February."

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The revised Summary of Economic Projections showed that policymakers were still projecting a total of 50 basis points (bps) reduction in the interest rate in 2025. While speaking in the post-meeting press conference, Fed Chairman Jerome Powell reiterated that the central bank will not be in a hurry to move on rate cuts, adding that they can maintain policy restraint for longer if the economy remains strong. Related news US Dollar Forecast: Inflation, tariffs and the cautious Fed Fed's Waller: Fed has tools available to mitigate unanticipated market disturbances Fed's Williams: Current modestly restrictive monetary policy entirely appropriate Commenting on the policy outlook, Chicago Fed President Austan Goolsbee told CNBC that the Fed needs to be a steady hand and take the long view on the economy. Similarly, NY Fed President John Williams noted that there is a lot of uncertainty in the economy, adding that they are not in a hurry to make the next monetary policy decision. According to the CME FedWatch Tool, markets are currently pricing in about a 15% probability of a 25 bps rate cut in May. Meanwhile, FXStreet (FXS) Fed Sentiment Index rose above 110 after dipping below 100 just before the Fed's blackout period started, highlighting a hawkish tilt in the Fed's overall language. This coincided with a three-day recovery in the US Dollar (USD) Index.  Fed FAQs What does the Federal Reserve do, how does it impact the US Dollar? Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. How often does the Fed hold monetary policy meetings? The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis. What is Quantitative Easing (QE) and how does it impact USD? In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar. What is Quantitative Tightening (QT) and how does it impact the US Dollar? Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.  

US Dollar (USD) inched higher as 2 Apr reciprocal tariff deadline draws nearer. Officials said that Trump will announce widespread reciprocal tariffs on nations or blocs but is set to exclude some. DXY was last at 104 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.  USD may continue to be better bid in the near term "As of now, Trump administration is not planning separate, sectoral-specific tariffs to be unveiled at the same event. It was also mentioned that only countries that don’t have tariffs on the US, and with whom the US has a trade surplus, will not be tariffed under the reciprocal plan. So likely, Australia, Singapore, HK and perhaps, UK may be excluded while China, EU, South Korea, Japan, India and Thailand are amongst some of the countries that may be hit (for having tariff on US goods and a trade surplus with US)."  "Tariff imposition can undermine sentiments and lead to spikes in the USD. The likes of KRW, JPY, CNH, MYR, IDR may be undermined in the near term. In addition, there remains some caution of EM contagion risks. Weekend arrest and subsequent imprisonment of Istanbul’s mayor may continue to weigh on Lira and EM FX today. Tariff war and lingering EM contagion fears can undermine risk sentiment."  "USD may continue to be better bid in the near term. Daily momentum turned mild bullish while RSI rose. Rebound risk remains likely in the interim. Resistance here at 104 (61.8% fibo retracement of Oct low to Jan high), 104.40 and 105 levels (50% fibo, 21, 200 DMAs). Support at 103.10, 102.50 levels (76.4% fibo)." 
 

The US Dollar (USD) found some support last week after a very weak start to March. The Federal Reserve's reiterated cautiousness on rate cuts has likely prevented further bearish sentiment from accumulating on the dollar. Reports suggesting some countries may be exempt from the first protectionism wave are helping risk sentiment and are modestly weighing on the dollar this morning, ING's FX analyst Francesco Pesole notes. DXY can potentially restabilise around 104 "At the same time, there are key data hurdles on the path to the dollar’s re-appreciation. As things stand now, consumer confidence is probably the single most important input for FX, so tomorrow’s Conference Board survey results are the key event of the week. Our call is 93, close to consensus, but activity indicators have substantially undershot expectations of late, so we still see the release as mostly a downside risk for USD. Later in the week, we’ll also look at core PCE for February, which is expected at 0.3% month-on-month. That should not tilt the balance in any specific direction when it comes to Fed expectations but can be read as a mildly hawkish signal and dollar positive." "Russia-Ukraine (indirect) peace talks will also remain on investors’ radars. The latest developments suggest some improvement but provide no clear indication that an immediate ceasefire is on the cards. Market optimism on that, which showed through some European FX underperformance, risks being scaled a bit further unless there is tangible progress in this week’s talks." "We retain a bullish bias on the dollar for the coming weeks. But short-term noise remains likely, and the dollar may soften in the first half of this week on some soft PMIs (today) and consumer confidence disappointment (tomorrow) before recovering into the PCE release on Friday, with DXY potentially restabilising around 104."

Euro (EUR) fell for a 3rd consecutive session. EUR was last seen trading at 1.0834 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.  Risks skewed to the downside in the interim "The German/European spending plans and hopes of a Ukraine peace deal are positive catalysts for EUR but given the sharp runup in EUR, and ahead of reciprocal tariff risks on 2 Apr, we continue to caution for risk of near-term pullback. To add, TRY sell-off may also have spillover effects on EUR, given some exposure of European banks to Turkish borrowers (about EUR100bn)."  "On tariffs, it remains uncertain in terms of timing on whether the 25% tariff on European auto and other products or the 200% tariff on European alcohol will be effective soon. Confirmation of the tariffs may see EUR dip, but the pullback may not translate into a larger decline. Instead, it may even be seen as a chance to buy dips, considering the emergence of new positive factors: potential Ukraine peace deal, expectations of defence spending and chance that ECB easing may slow."  "Bullish momentum on daily chart is fading while RSI fell. Risks skewed to the downside in the interim. That said bullish crossovers observed: 21 cut 200 DMA to the upside while 50 cuts 100 DMA to the upside. Bias to buy dips. Support here at 1.08, 1.0700/20 levels (21, 200 DMAs, 50% fibo retracement of Oct high to Jan low). Resistance at 1.0950/70 levels (76.4% fibo, recent high), 1.1020 levels."

Our considerations above on somewhat fading optimism on a speedy ceasefire in Ukraine have likely contributed to softer EUR momentum, ING's FX analyst Francesco Pesole notes. EUR/USD to return above 1.090 by Wednesday "EUR/USD is still around 1% above our estimate for its short-term fair value, as a two-year swap rate gap around -150bp is more consistent with 1.07 than 1.09, and our one-month view on the pair remains bearish. However, this week is quite data-heavy and the euro could squeeze some extra benefit from fiscal optimism." "We have a few European Central Bank speakers to watch this week, but we are quite doubtful that any new guidance will emerge before we see more clarity on the impact of US tariffs."  "Our call for this week is a return above 1.090 in EUR/USD by Wednesday followed by some softness towards the back end of the week as markets look past data and build more defensive positions ahead of the 2 April tariff event. We still doubt there is enough bullish thrust to take the pair above 1.10."

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Gold holds ground above $3,000 after Friday’s decline. Markets hope US President Trump will ease off on tariffs by April 2. Gold is still supported in the $3,000 region, though pressure is building for more downside. Gold’s price (XAU/USD) stabilizes near $3,020 at the time of writing on Monday as traders assess fresh tariff headlines over the weekend. News emerging that the Trump administration will ease off on the broad scope of tariffs being imposed on April 2 brings sighs of relief in markets. Instead, United States (US) President Donald Trump is said to be looking for more specifically targeted tariffs on specific sectors per country or region.  This helps ease the fear of broad reciprocal tariffs. The idea behind these tariffs is to get companies to reshore back to the US. However, a 25% tariff is not high enough to make the supply chains of corporations untenable, and the Trump administration would actually need to impose import taxes of perhaps 100% to 200%, as well as offer big government subsidies, to get companies to reshore their manufacturing, Marketwatch reports. Daily digest market movers: Sector movesJohannesburg-based firm Gold Fields said Monday it put forward a non-binding proposal to buy the Perth-based company Gold Road Resources for 3.05 Australian Dollars (AUD) a share in cash on March 7, valuing its equity at 3.3 billion AUD and implying a total enterprise value of 2.4 billion AUD. Gold Road’s board rejected the offer, Bloomberg reports. Chinese metals producer Zijin Mining Group Co. shares rose more than 5% after the company posted a record profit on surging Gold and Copper prices. Heightened global economic and geopolitical risks, coupled with tariffs, are increasing uncertainty, the company said in a statement after net income surged 52% last year. Rising demand for Gold Exchange Traded Funds (ETFs), as well as central bank purchases, will push bullion higher this year, Reuters reports.  US tariffs due April 2 are poised to be more targeted than the sprawling ones, according to US officials familiar with the matter. Still, traders remain wary with officials in China and Australia warning of widespread shocks to the global economy from US trade policy, Bloomberg reports. Technical Analysis: Not defused yetThe softer comments on tariffs will mean a bit less tailwind for Bullion. Expect to see some selling pressure on Gold, though the tailwind will not fade completely. Tariffs are still to come, and even if they are targeted and per sector, it could still severely impact markets and certain countries as long the full-scale scope is not yet communicated.  Regarding technical levels, at the time of writing Gold stabilizes just above the intraday Pivot Point at $3,023. Looking up, the R1 resistance stands at $3,046. Should US President Trump push back on earlier comments from US officials on the scope of the tariffs, for example, the current all-time high at $3,057 could face a new test. On the downside, some red flags are rising as the intraday S1 support stands at $2,998. That means the $3,000 mark is exposed and needs to act on its own as big support. There is no line of defense before it to make sure any downturn is being slowed. Further down, the S2 support comes in at $2,975. XAU/USD: Daily Chart Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.  

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}UK Services PMI rose to 53.2 in March, beating estimates.Manufacturing PMI in the UK unexpectedly declined to 44.6 in March.GBP/USD clings to gains near 1.2650 after UK business PMIs.The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) unexpectedly dropped to 44.6 in March from 46.9 in February. The data missed the consensus forecast of 47.3 in the reported period. Meanwhile, the Preliminary UK Services Business Activity Index jumped to 53.2 in March versus February’s 51 while coming in above the market expectations of 51.2. FX implicationsGBP/USD holds higher ground near 1.2950 after the mixed UK PMI data. The pair is up 0.25% on the day, as of writing. British Pound PRICE Today The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.   USD EUR GBP JPY CAD AUD NZD CHF USD   -0.11% -0.24% 0.19% -0.16% -0.33% -0.07% -0.13% EUR 0.11%   -0.23% -0.19% -0.00% -0.23% 0.09% 0.03% GBP 0.24% 0.23%   0.43% -0.41% -0.03% 0.32% 0.15% JPY -0.19% 0.19% -0.43%   -0.35% -0.55% -0.25% -0.34% CAD 0.16% 0.00% 0.41% 0.35%   -0.12% 0.09% 0.03% AUD 0.33% 0.23% 0.03% 0.55% 0.12%   0.33% 0.28% NZD 0.07% -0.09% -0.32% 0.25% -0.09% -0.33%   0.01% CHF 0.13% -0.03% -0.15% 0.34% -0.03% -0.28% -0.01%   The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).  

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The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 91.15 on Monday, down from 91.54 on Friday. Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver. (An automation tool was used in creating this post.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Platinum Group Metals (PGMs) trade mixed at the beginning of Monday, according to FXStreet data. Palladium (XPD) changes hands at $963.61 a troy ounce, with the XPD/USD pair advancing from its previous close at $962.30. In the meantime, Platinum (XPT) trades at $979.28 against the United States Dollar (USD) early in the European session, shedding ground after the XPT/USD pair settled at $981.70 at the previous close. Palladium FAQs Why do people buy Palladium? Palladium is a rare and valuable precious metal with strong industrial demand, particularly in the automotive sector. It is widely used in catalytic converters to reduce vehicle emissions, making it essential for global environmental regulations. Investors also see palladium as a store of value, similar to gold and silver, and a potential hedge against inflation. Given its supply constraints and high demand, palladium often attracts traders looking for price volatility and profit opportunities. What is Palladium in trading? In trading, palladium (XPD/USD) is considered both an industrial and a precious metal. It is traded on major commodity exchanges like the New York Mercantile Exchange (NYMEX) and the London Platinum and Palladium Market (LPPM). Traders speculate on palladium prices through futures contracts, exchange-traded funds (ETFs), and spot markets. Since palladium supply is concentrated in a few countries, particularly Russia and South Africa, geopolitical and mining disruptions can lead to significant price swings, making it an attractive asset for short-term traders and long-term investors alike. Is Palladium more expensive than Gold? Palladium has historically been less expensive than gold, but in recent years, it has traded at a premium due to rising demand and tight supply. Prices fluctuate based on market conditions, but palladium has, at times, outperformed gold due to its critical role in the automotive industry. However, as markets shift and industrial demand changes, the price relationship between the two metals can vary. What does the price of Palladium depend on? Palladium prices are influenced by several factors, including industrial demand, supply constraints, and macroeconomic conditions. The automotive industry is the biggest driver of demand, as stricter emissions regulations increase the need for palladium-based catalytic converters. Supply is heavily dependent on mining output from Russia and South Africa, making the metal vulnerable to geopolitical risks and supply chain disruptions. Additionally, broader market trends, such as the strength of the US dollar, interest rates, and economic growth, can impact palladium prices, as they do with other precious metals. Platinum Group Metals (PGMs) prices mentioned above are based on the FXStreet data feed for Contracts for Differences (CFDs). (An automation tool was used in creating this post.)

As expected, the Bank of England (BOE) decided to maintain its Bank Rate at 4.75% last Thu (20 Mar). However, in a deviation from expectations (for a 7-2 split), eight members of the Monetary Policy Committee (MPC) voted to keep the policy rate unchanged, with only perennial dove Swati Dhingra voting for a 25 bps rate cut to 4.50%, UOB Group's economist Lee Sue Ann notes.  MPC to stick to a quarterly pace of cuts "The Bank of England (BOE) left interest rates unchanged last Thu (20 Mar), as expected. What was surprising was the vote split, which saw eight members of the Monetary Policy Committee (MPC) voting to keep the policy rate unchanged, with only perennial dove Swati Dhingra voting for a 25 bps rate cut to 4.50%."  "Our base case is that the MPC will stick to a quarterly pace of cuts. While the odds for the BOE to cut in May are now lower given the vote split, statement, and minutes, we think a May cut is still in the cards considering the sluggishness of the UK economy."  "We will, nonetheless, not be making any changes to our view as we think the BOE may also want to wait for the Spring Statement later this week (26 Mar, 8pm SGT) to make any wholesale changes to its economic assessment."

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD kicks off the new week on a weaker note and snaps a three-day winning streak.Bets that the Fed will resume its rate-cutting cycle soon seem to weigh on the buck.A positive risk tone also undermines the safe-haven USD and contributes to the slide.The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, struggles to capitalize on a three-day-old recovery from a multi-month low and attracts fresh sellers at the start of a new week. The index remains depressed through the first half of the European session and is currently placed below the 104.00 mark, down around 0.20% for the day.  The Federal Reserve's (Fed) less dovish outlook maintained its forecast to deliver two 25 basis points rate cuts by the end of this year and gave a bump higher to its inflation projection. Investors, however, have been speculating that the US central bank will resume its rate-cutting cycle sooner than expected amid worries about a tariff-driven slowdown in US economic activity. This, in turn, is seen undermining the Greenback. Meanwhile, Reports over the weekend indicated that US President Donald Trump is planning a narrower, more targeted agenda for the so-called reciprocal tariffs set to take effect on April 2. This boosts investors' appetite for riskier assets and turns out to be another factor denting demand for the safe-haven buck. That said, a goodish pickup in the US Treasury bond yields could help limit any meaningful downside for the USD.  Traders now look forward to the release of the flash US PMIs, which, along with speeches by influential FOMC members, might provide some impetus to the Greenback. The focus, however, will remain glued to the US Personal Consumption Expenditure (PCE) Price Index on Friday, which could offer fresh cues about the Fed's rate-cut path and determine the next leg of a directional move for the Greenback.  US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.  

Eurozone Manufacturing PMI rose to 48.7 in March, beating 48 forecast.Bloc’s Services PMI dropped to 50.4 in March vs. 51 estimate.EUR/USD keeps the green near 1.0850 after German, Eurozone PMI data.             The Eurozone manufacturing sector contraction eased, while service sector activity underperformed in March, according to data from the HCOB's latest Purchasing Managers' Index (PMI) Survey, published on Monday. The Eurozone Manufacturing Purchasing Managers Index (PMI) improved to 48.7 in March from 47.6 in February, beating the market consensus of 48. The bloc’s Services PMI declined to 50.4 March from 50.6 in February. The data came in below the anticipated 51 reading. The HCOB Eurozone PMI Composite arrived at 50.4 in March, following February’s 50.2.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}NZD/USD challenges the immediate resistance at the nine-day EMA of 0.5753 level.Technical analysis of the daily chart suggests a strengthening bullish bias.On the downside, the nearest support is at the 50-day EMA, around 0.5717.NZD/USD rebounds after four consecutive losing sessions, trading around 0.5730 during European hours on Monday. Technical analysis of the daily chart indicates a developing bullish bias as the pair moves within an ascending channel pattern. The nine-day Exponential Moving Average (EMA) remains above the 50-day EMA, suggesting an ongoing recovery in the overall trend. However, the pair's drop below the nine-day EMA signals short-term weakness, indicating a temporary loss of momentum. This points to a bearish short-term trend within a broader bullish framework. Additionally, the 14-day Relative Strength Index (RSI) remains above 50, suggesting the positive bias is active. On the upside, the NZD/USD pair tests the immediate barrier at a nine-day EMA of 0.5753 level. A break above this level could improve the short-term price momentum and support the pair to explore the region around the three-month high at 0.5832, reached on March 18. Further resistance appears at the upper boundary of the ascending channel near the 0.5870 level. The immediate support is located at the 50-day EMA of 0.5717. A decisive break below this level could weaken medium-term momentum, applying downward pressure on the NZD/USD pair to navigate the area around the ascending channel’s lower boundary at 0.5650 level. A break below the channel could reinforce the bearish bias and drive the NZD/USD pair to approach the monthly low at 0.5593, recorded on March 3. NZD/USD: Daily Chart New Zealand Dollar PRICE Today The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Japanese Yen.   USD EUR GBP JPY CAD AUD NZD CHF USD   -0.25% -0.27% 0.16% -0.15% -0.38% -0.04% -0.10% EUR 0.25%   -0.12% -0.10% 0.15% -0.14% 0.26% 0.20% GBP 0.27% 0.12%   0.43% -0.36% -0.05% 0.39% 0.22% JPY -0.16% 0.10% -0.43%   -0.31% -0.56% -0.18% -0.27% CAD 0.15% -0.15% 0.36% 0.31%   -0.18% 0.11% 0.05% AUD 0.38% 0.14% 0.05% 0.56% 0.18%   0.42% 0.35% NZD 0.04% -0.26% -0.39% 0.18% -0.11% -0.42%   0.00% CHF 0.10% -0.20% -0.22% 0.27% -0.05% -0.35% -0.01%   The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).  

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}Germany’s Manufacturing PMI advanced to 48.3 in March vs. 47.7 anticipated.Services PMI for the German economy dropped to 50.2 in March vs. 51.4 forecast.EUR/USD pares gains below 1.0850 after mixed German PMIs.The German manufacturing sector activity performed better than expected while the services sector worsened in March, the preliminary business activity report published by the HCOB survey showed Monday. The HCOB Manufacturing PMI in the Eurozone’s top economy rose to 48.3 this month, compared with February’s 46.5, beating the expected 47.7 figure. The measure hit a 31-month high. Meanwhile, Services PMI dropped to 50.2 in March from 51.1 in February. The market consensus was for a 51.4 print in the reported period. The gauge reached a four-month low. The HCOB Preliminary German Composite Output Index came in at 50.9 in March vs 50.4 in February and 51.2 anticipated. The index was at its highest in ten months. FX implications  EUR/USD is off the highs, still up 0.29% on the day to trade near 1.0845 after the mixed German data. Euro PRICE Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.   USD EUR GBP JPY CAD AUD NZD CHF USD   -0.21% -0.22% 0.19% -0.14% -0.36% -0.05% -0.15% EUR 0.21%   -0.12% -0.10% 0.12% -0.16% 0.22% 0.10% GBP 0.22% 0.12%   0.41% -0.39% -0.07% 0.34% 0.12% JPY -0.19% 0.10% -0.41%   -0.33% -0.57% -0.22% -0.36% CAD 0.14% -0.12% 0.39% 0.33%   -0.17% 0.09% -0.01% AUD 0.36% 0.16% 0.07% 0.57% 0.17%   0.38% 0.27% NZD 0.05% -0.22% -0.34% 0.22% -0.09% -0.38%   -0.04% CHF 0.15% -0.10% -0.12% 0.36% 0.01% -0.27% 0.04%   The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} West Texas Intermediate (WTI) Oil price advances on Monday, early in the European session. WTI trades at $68.33 per barrel, up from Friday’s close at $68.27. Brent Oil Exchange Rate (Brent crude) is also up, advancing from the $71.70 price posted on Friday, and trading at $71.74. WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia. Disclaimer: West Texas Intermediate (WTI) and Brent oil prices mentioned above are based on FXStreet data feed for Contracts for Differences (CFDs). (An automation tool was used in creating this post.)

European Central Bank (ECB) Executive Board member Piero Cipollone said on Monday, “the inflation target may be reached sooner than the last projections indicated.” Additional quotes Key elements strengthen the case for further rate cuts. Current conditions make further policy easing conceivable.

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}AUD/JPY gains momentum as Australia’s Judo Bank Manufacturing PMI climbs to 52.6 in March from 50.4 in February.The Australian Dollar strengthens on expectations that the Reserve Bank of Australia will keep interest rates unchanged in April.The Japanese Yen weakens as disappointing Jibun Bank PMI data weighs on sentiment.AUD/JPY halts its four-day losing streak, trading near 94.20 during early European hours on Monday. The currency cross gains as the Australian Dollar (AUD) strengthens following the release of upbeat preliminary Judo Bank PMI data. Australia’s Judo Bank Manufacturing PMI rose to 52.6 in March from 50.4 in February, while the Services PMI improved to 51.2 from 50.8. The Composite PMI also climbed to 51.3, up from 50.6 previously. The AUD gains further traction amid expectations that the Reserve Bank of Australia (RBA) will hold interest rates steady in April after cutting borrowing costs for the first time in four years in February. Additionally, optimism surrounding potential Chinese stimulus supports the Australian economy, given the close trade relationship between the two nations. The AUD/JPY cross also benefits from improved risk sentiment as the White House revises its tariff strategy ahead of the April 2 implementation, according to the Wall Street Journal. Geopolitical tensions have eased, with Ukrainian and US officials meeting in Riyadh on Sunday to discuss peace efforts, while President Trump continues to push for an end to the three-year war. Additionally, the AUD/JPY cross appreciates as the Japanese Yen (JPY) remains under pressure as weaker-than-expected PMI data offsets the Bank of Japan’s (BoJ) hawkish stance. Japan’s Jibun Bank Services PMI declined to 49.5 in March from February’s six-month high of 53.7, marking its first contraction since October and the sharpest drop in nine months. Meanwhile, the Manufacturing PMI slipped to 48.3 in March from 49.0 in February, missing expectations of 49.2 and extending its contraction streak to nine consecutive months. The Composite PMI also fell, dropping from 52.0 in February to 48.5 in March. Investors now await preliminary PMI figures for the Eurozone and Germany, due later in the day. Economic Indicator Judo Bank Manufacturing PMI The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by Judo Bank and S&P Global, is a leading indicator gauging business activity in Australia’s manufacturing sector. The data is derived from surveys of senior executives at private-sector companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for AUD. Read more. Last release: Sun Mar 23, 2025 22:00 (Prel)Frequency: MonthlyActual: 52.6Consensus: -Previous: 50.4Source: S&P Global  

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Here is what you need to know on Monday, March 24: After outperforming its rivals for three consecutive days, the US Dollar (USD) struggles to find demand at the beginning of the week. Later in the day, S&P Global will publish preliminary Manufacturing and Services Purchasing Managers Index (PMI) data for Germany, the Eurozone, the UK and the US.  US Dollar PRICE Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Australian Dollar.   USD EUR GBP JPY CAD AUD NZD CHF USD   -0.24% -0.21% 0.33% -0.17% -0.27% 0.02% -0.05% EUR 0.24%   -0.08% 0.05% 0.11% -0.05% 0.31% 0.23% GBP 0.21% 0.08%   0.52% -0.44% -0.00% 0.39% 0.20% JPY -0.33% -0.05% -0.52%   -0.50% -0.63% -0.30% -0.40% CAD 0.17% -0.11% 0.44% 0.50%   -0.05% 0.19% 0.12% AUD 0.27% 0.05% 0.00% 0.63% 0.05%   0.37% 0.28% NZD -0.02% -0.31% -0.39% 0.30% -0.19% -0.37%   -0.00% CHF 0.05% -0.23% -0.20% 0.40% -0.12% -0.28% 0.00%   The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote). Following the sharp decline seen in the first half of March, the USD Index ended the previous week in positive territory, supported by the Federal Reserve's (Fed) cautious outlook on further policy-easing and some upbeat data releases from the US. Early Monday, the USD Index corrects lower and fluctuates at around 104.00. Meanwhile, US stock index futures rise between 0.6% and 0.9% in the European morning, highlighting an improving risk mood. According to the Wall Street Journal, the White House is adjusting its approach to tariffs set to take effect on April 2, likely omitting a set of industry-specific tariffs while applying reciprocal tariffs aimed at countries with significant trade ties to the US.  The data from Australia showed on Monday that Judo Bank Composite PMI edged higher to 51.3 in March's flash estimate from 50.6 in February. This reading highlighted that the economic activity in the private sector expanded at a slightly faster pace than it did in the previous month. After posting losses for four consecutive days, AUD/USD gains traction and rises toward 0.6300 in the European morning on Monday. Bank of Japan (BoJ) Deputy Governor Shinichi Uchida told the Japanese parliament on Monday that they will adjust the degree of monetary easing by raising the policy rate, if the economic and prices outlooks are to be achieved. In the meantime, Jibun Bank Manufacturing PMI in Japan declined to 48.3 in March from 49 in February and the Services PMI dropped to 49.5 from 53.7. These figures showed that both sectors dropped into the contraction territory. Despite the selling pressure surrounding the USD, USD/JPY edges higher early Monday and was last seen trading at around 149.70. After losing more than 0.5% in the previous week, EUR/USD corrects higher toward 1.0850 to begin the European session on Monday.GBP/USD registered losses on Thursday and Friday to end the previous week virtually unchanged. The pair clings to modest daily gains and trades slightly below 1.2950 early Monday. Later in the day, Bank of England Governor Andrew Bailey will speak at a lecture on "Growth in the UK Economy" at the University of Leicester, England. Following the record setting rally seen in the first half of last week, Gold turned south and closed in the red on Thursday and Friday. After settling above $3,000, XAU/USD seems to have entered a consolidation phase at around $3,020 on Monday. Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas. What is the difference between taxes and tariffs? Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers. Are tariffs good or bad? There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs. What is US President Donald Trump’s tariff plan? During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.  

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The Greenback remains under pressure as analysts believe Trump’s aggressive and erratic trade policies could trigger a recession. Trump has declared April 2 to be "Liberation Day" for the US, when he will implement so-called reciprocal tariffs that seek to equalize US tariffs with those charged by trading partners, as well as tariffs on sectors such as automobiles, pharmaceuticals, and semiconductors, which he has repeatedly stated would be enacted on that day.

The Bank of England (BoE) left interest rates unchanged on Thursday, keeping the benchmark rate at 4.5%. The decision had been widely anticipated by markets. BoE Governor Andrew Bailey said there is a lot of uncertainty at the moment, but he said rate-setters still believed rates were “on a gradually declining path.” Looking further ahead, we continue to expect 100 bps of BoE cuts for a terminal rate of 3.5% by early 2026,” noted Nomura Bank analysts George Buckley and Andrzej Szczepaniak. 

However, the gloomy UK economic picture, along with increased global policy uncertainty and weak confidence, might undermine the GBP.  The UK economy remains in the “wait-and-see mode” as it expects the upcoming budget from Chancellor Rachel Reeves and contends with the growing risks from US trade policies. Investors will closely monitor the UK Consumer Price Index (CPI) inflation data for February for fresh impetus, which will be released later on Wednesday.  Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Bank of Japan (BoJ) Governor Kazuo Ueda said on Monday that the central bank “will not rule out the possibility of selling the BoJ’s government bond holdings.” Earlier in the day, Ueda said that the central bank “will adjust the degree of monetary easing if the 2% inflation target is likely to be achieved.”   Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/GBP drifts higher to around 0.8380 in Monday’s early European session. Germany’s upper house approved the measures to unlock hundreds of billions of Euros in debt-financed defense and infrastructure spending.The Pound Sterling softens despite slightly hawkish remarks from the BoE. The EUR/GBP cross gains traction to near 0.8380 during the early European session on Monday. The Euro (EUR) strengthens against the Pound Sterling (GBP) as Germany’s upper house of parliament signed off on a landmark debt reform plan. Later on Monday, the preliminary reading of the Purchasing Managers Index (PMI) reports from Germany and the Eurozone will be in the spotlight.

The Bundesrat, Germany's second chamber of parliament, on Friday, voted in favor of a massive spending package that is set to pour billions of euros into defense, infrastructure and climate protection. This, in turn, continues to underpin the shared currency in the near term. 

The Pound Sterling has declined after the Bank of England (BoE) left interest rates unchanged on Thursday, keeping the central bank’s benchmark rate at 4.5%. The decision had been widely anticipated by markets. The GBP weakens even though the steady interest rate decision seemed slightly hawkish. BoE Governor Andrew Bailey said there is a lot of uncertainty at the moment, but he still thinks the monetary policy is on a “gradually declining path.”

The murky UK economic outlook, along with the elevated global policy uncertainty and weak confidence, could drag the GBP lower. However, investors will take more cues from the UK Consumer Price Index (CPI) inflation data for February, which will be published later on Wednesday.  Euro FAQs What is the Euro? The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CHF climbs as the US Dollar rebounds from daily losses, bolstered by rising Treasury yields.The US Dollar faced headwinds amid growing concerns over a potential economic slowdown in the United States.The Swiss Franc weakens as improved risk sentiment reduces demand for safe-haven assets.USD/CHF extends its winning streak for the fourth consecutive session, trading near 0.8840 during Asian hours on Monday. The pair gains as the US Dollar (USD) recovers its daily losses, supported by rising Treasury yields amid a hawkish tone surrounding the Federal Reserve (Fed). Last week, Fed Chair Jerome Powell noted, “Labor market conditions are solid, and inflation has moved closer to our 2% longer-run goal, though it remains somewhat elevated.” The US Dollar Index (DXY), which measures the USD against six major currencies, continues to rise, hovering around 104.10. Meanwhile, yields on US 2-year and 10-year Treasury bonds stand at 3.97% and 4.28%, respectively. However, the USD faced some pressure amid concerns over a potential US economic slowdown, driven by trade policies under President Trump. Investors now await the preliminary reading of the US S&P Global PMI data for March, set for release later in the North American session. The Swiss Franc (CHF) may be under downward pressure due to improved risk sentiment, reducing demand for safe-haven assets. This shift follows reports that the White House is adjusting its tariff strategy ahead of the April 2 implementation, according to the Wall Street Journal. Additionally, geopolitical tensions have eased, with Ukrainian and US officials meeting in Riyadh on Sunday to discuss peace efforts, while President Trump continues to advocate for an end to the three-year war. The Swiss National Bank (SNB) lowered its key policy rate to 0.25% on Thursday, its lowest level since September 2022. Although the move was widely anticipated, the SNB refrained from committing to a specific policy path. Policymakers emphasized that lower borrowing costs are necessary to align monetary conditions with subdued inflationary pressure. Swiss Franc FAQs What key factors drive the Swiss Franc? The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone. Why is the Swiss Franc considered a safe-haven currency? The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in. How do decisions of the Swiss National Bank impact the Swiss Franc? The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF. How does economic data influence the value of the Swiss Franc? Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate. How does the Eurozone monetary policy affect the Swiss Franc? As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.  

FX option expiries for Mar 24 NY cut at 10:00 Eastern Time via DTCC can be found below. EUR/USD: EUR amounts 1.0700 1.3b 1.0775 1.5b 1.0800 1b 1.0850 1.4b 1.0925 1.3b USD/JPY: USD amounts                                  149.10 948m 150.00 916m USD/CHF: USD amounts      0.8730 743m AUD/USD: AUD amounts 0.6365 572m USD/CAD: USD amounts        1.4230 526m

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Gold price attracts some sellers for the third successive day on Monday.A positive risk tone and a modest USD uptick undermine the commodity.Fed rate cut bets and geopolitical risks could support the XAU/USD pair. Gold price (XAU/USD) struggles to capitalize on Friday's modest bounce from levels just below the $3,000 psychological mark and kicks off the new week on a weaker note. The global risk sentiment gets a minor lift in reaction to reports that US President Donald Trump's reciprocal tariffs would be narrower and less strict than initially feared. This helps ease concerns about their impact on the global economy, which boosts investors' confidence and weighs on the safe-haven precious metal for the third successive day.  Meanwhile, the US Dollar (USD) preserves last week's modest recovery gains from a multi-month trough and turns out to be another factor undermining demand for the Gold price. However, expectations that a tariff-driven slowdown in the US economic activity could force the Federal Reserve (Fed) to resume its rate-cutting cycle soon hold back the USD bulls from placing fresh bets. This, along with geopolitical risks, should act as a tailwind for the non-yielding yellow metal and help limit any meaningful corrective slide.  Daily Digest Market Movers: Gold price bulls turn cautious amid upbeat market mood, recent USD recovery Reports over the weekend indicated that US President Donald Trump is planning a narrower, more targeted agenda for the so-called reciprocal tariffs set to take effect on April 2. This, in turn, boosts investors' appetite for riskier assets and undermines the safe-haven Gold price at the start of a new week.  Delegations from the US have been holding talks with Ukrainian officials as part of peace negotiations and will meet Russian officials on Monday for further talks. Trump and Russian President Vladimir Putin earlier this month agreed on a 30-day pause on Russian strikes on Ukrainian energy facilities. The US Dollar held steady near a one-and-half-week high touched on Friday in the wake of the Federal Reserve's less dovish outlook, maintaining its forecast to deliver two 25 basis points rate cuts by the end of this year. This turns out to be another factor weighing on the non-yielding yellow metal.  Meanwhile, Fed Chair Jerome Powell said last week that tariffs are likely to dampen economic growth. Moreover, traders still see the US central bank lowering borrowing costs at the June, July, and October monetary policy meetings, which keeps a lid on the USD and could support the XAU/USD pair.  Israel continues with its heavy strikes in Gaza and bombs the largest hospital in the southern region, killing Hamas leader Ismail Barhoum. Meanwhile, Iran-backed Houthis in Yemen fired a ballistic missile at Israel on Sunday, though it was successfully intercepted by Israel's air defense.  Furthermore, the US military conducted fresh airstrikes on Yemen’s northern province of Saada. Moreover, Houthis claimed to have launched fresh attacks on an aircraft carrier in the Red Sea and the Ben Gurion airport in central Israel, raising the risk of a further escalation of Middle East tensions.  Traders on Monday will look to the release of flash global PMIs, which would provide fresh insight into the global economic health and provide some impetus to the commodity. The focus, however, will remain on the US Personal Consumption and Expenditure (PCE) Price Index on Friday. Gold price needs to find acceptance below the $3,000 mark to support prospects for any meaningful corrective fall From a technical perspective, any subsequent slide might continue to attract some buyers near the $3,000 mark. The said handle should act as a key pivotal point, which if broken decisively might prompt some technical selling and drag the Gold price to the $2,982-2,978 region. The corrective fall could extend further towards the $2,956-2,954 resistance breakpoint, now turned support.  On the flip side, the all-time peak, around the $3,057-3,058 zone touched last week, could act as an immediate hurdle. Given that the daily Relative Strength Index (RSI) has trended lower from the overbought territory, some follow-through buying will be seen as a fresh trigger for bulls. This, in turn, will set the stage for an extension of the recent well-established uptrend witnessed over the past three months or so. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/USD gathers strength to near 1.0815 in Monday’s Asian session.The constructive view of the pair prevails above the key 100-day EMA with the bullish RSI indicator. The immediate resistance level emerges at 1.0955; the downside target to watch is 1.0775.The EUR/USD pair edges higher to around 1.0815, snapping the three-day losing streak during the early Asian session on Monday. The concerns over the economic slowdown in the United States by trade policies under US President Donald Trump weigh on the US dollar (USD) and create a tailwind for EUR/USD. Traders will take more cues from the preliminary reading Purchasing Managers Index (PMI) for March from the Eurozone, Germany, and the US, which is due later on Monday. 

Technically, the positive outlook of the EUR/USD pair remains in play as the price is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is reinforced by the 14-day Relative Strength Index (RSI), which stands above the midline near 59.35, displaying bullish momentum in the near term. 

The first upside target for the cross emerges at 1.0955, the high of March 18. Extended gains could see a rally to the 1.1000 psychological level. The additional upside filter to watch is 1.1111, the upper boundary of the Bollinger Band.

On the flip side, the low of March 7 at 1.0775 acts as an initial support level for the major pair. The key contention level is located in the 1.0605-1.0600 zone, representing the 100-day EMA and the round figure. Sustained trading below the mentioned level could see a drop to 1.0418, the low of February 20.    EUR/USD daily chart Euro FAQs What is the Euro? The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.    

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}EUR/JPY climbs as the Japanese Yen weakens after Monday’s PMI release.The Jibun Bank Services PMI dropped to 49.5 in March, signaling the first contraction in services activity since October.The Euro finds support from improved risk sentiment as the White House revises its tariff strategy.EUR/JPY continues its upward momentum for a second consecutive session, trading near 162.00 during Asian hours on Monday. The Japanese Yen remains under pressure as weaker-than-expected Purchasing Managers’ Index (PMI) data offsets a hawkish Bank of Japan’s (BoJ) outlook. Investors are now looking ahead to preliminary PMI figures for the Eurozone and Germany, set for release later in the day. The Jibun Bank Services PMI fell to 49.5 in March from 53.7 in February, which had been a six-month high, according to preliminary data. This marks the first contraction in services activity since October and the sharpest decline in nine months. Meanwhile, the Manufacturing PMI slipped to 48.3 in March 2025 from 49.0 in February, missing market expectations of 49.2 and extending its contraction streak to nine consecutive months. The Composite PMI also declined, dropping from 52.0 in February to 48.5 in March. Last week, the Bank of Japan maintained its policy rate at 0.5%, with board members expressing a cautious stance. However, expectations remain for further rate hikes this year as inflationary pressures and rising wages persist. The AUD/JPY pair strengthened as the Japanese Yen weakened against its counterparts amid improved risk sentiment. This shift comes as the White House revises its tariff strategy ahead of the April 2 implementation, according to the Wall Street Journal. Additionally, geopolitical tensions have eased, with Ukrainian and US officials meeting in Riyadh on Sunday to discuss peace efforts. Meanwhile, former President Trump continues to push for an end to the three-year war. In Europe, European Central Bank (ECB) Vice President Luis de Guindos stated in an interview with The Sunday Times that Trump’s policies are generating more economic instability than the COVID-19 crisis. Similarly, Jose Luis Escriva told Bloomberg TV on Friday that inflation and economic growth forecasts remain highly uncertain, making future interest rate decisions difficult to predict. Economic Indicator Jibun Bank Services PMI The Services Purchasing Managers Index (PMI), released on a monthly basis by Jibun Bank and S&P Global, is a leading indicator gauging business activity in Japan’s services sector. As the services sector dominates a large part of total GDP, the services PMI is an important indicator of the overall economic conditions in Japan. The data is derived from surveys of senior executives at private-sector companies from the services sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), employment and inflation. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Japanese Yen (JPY). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for JPY. Read more. Last release: Mon Mar 24, 2025 00:30 (Prel)Frequency: MonthlyActual: 49.5Consensus: -Previous: 53.7Source: S&P Global  

.fxs-related-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-related-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}.fxs-related-module-related-link a{text-decoration:none;color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px}.fxs-related-module-related-link a:hover,.fxs-related-module-related-link:hover,.fxs-related-module-related-link:hover a{color:#e4871b}.fxs-related-module-related-link a:hover{text-decoration:none}@media (min-width:680px){.fxs-related-module-title{font-size:19.2px;line-height:27.2px}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Gold prices fell in India on Monday, according to data compiled by FXStreet. The price for Gold stood at 8,335.71 Indian Rupees (INR) per gram, down compared with the INR 8,352.06 it cost on Friday. The price for Gold decreased to INR 97,226.11 per tola from INR 97,416.83 per tola on friday. Unit measure Gold Price in INR 1 Gram 8,335.71 10 Grams 83,357.12 Tola 97,226.11 Troy Ounce 259,269.80   2025 Gold Forecast Guide [PDF] Download your free copy of the 2025 Gold Forecast FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.   Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up. (An automation tool was used in creating this post.)

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Silver price remains steady as the US Dollar weakens amid growing concerns over a potential US economic slowdown.Silver may encounter resistance as the Federal Reserve holds its outlook for two rate cuts later this year.Improved risk sentiment and the White House’s revised tariff strategy could exert downward pressure on Silver prices.Silver price (XAG/USD) edges higher on Monday, trading around $33.10 per troy ounce during Asian hours after three consecutive sessions of losses. The rebound is driven by a weaker US Dollar as concerns over a potential US economic slowdown grow due to trade policies under President Donald Trump. The US Dollar Index, which measures the USD against six major currencies, halts its three-day winning streak and trades lower near 104.10. Meanwhile, market participants await the preliminary reading of the US S&P Global Manufacturing PMI for March. However, Silver may face headwinds as the Federal Reserve (Fed) maintains its outlook for two rate cuts later this year, following its decision to keep the federal funds rate at 4.25%–4.5% during its March meeting. The Fed's stance, aligning with forecasts of slower GDP growth and higher unemployment, helps counterbalance inflation concerns, which may be exacerbated by aggressive tariffs imposed by President Trump. Additionally, Silver prices could come under pressure from safe-haven flows amid improved risk sentiment as the White House revises its tariff strategy ahead of the April 2 implementation. According to the Wall Street Journal, the administration is expected to drop some industry-specific tariffs while imposing reciprocal tariffs on countries with strong trade ties to the US. Additionally, geopolitical tensions ease following talks between Ukrainian and US officials in Riyadh on Sunday. Efforts to broker a ceasefire continue, with President Trump advocating for an end to the three-year war. Ukrainian Defense Minister Rustem Umerov discussed measures to safeguard energy and critical infrastructure, while US and Russian delegates are set for separate talks on Monday, according to Bloomberg. Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CAD struggles to gain any meaningful traction on Monday amid mixed cues.Fed rate cut bets prompt some USD selling and act as a headwind for the major.Softer Oil prices and Canadian politics undermine the Loonie and lend support.The USD/CAD pair kicks off the new week on a softer note amid the emergence of some selling around the US Dollar (USD), though it lacks bearish conviction and has now reversed an Asian session dip to the 1.4325 region. Spot prices, however, remain confined in Friday's broader range and currently trade just below mid-1.4300s, nearly unchanged for the day. Even though the Federal Reserve (Fed) gave a bump higher to its inflation projection, investors seem convinced that a tariff-driven US economic slowdown might force the central bank to resume its rate-cutting cycle soon. This, along with a positive risk, fails to assist the safe-haven USD to build on a three-day-old recovery move from a multi-month low and turns out to be a key factor acting as a headwind for the USD/CAD pair.  Meanwhile, Crude Oil prices attract some sellers and move away from a three-week high touched on Friday as traders brace for US President Donald Trump's so-called reciprocal tariffs on April 2. Adding to this hopes for a positive outcome from Russia-Ukraine peace talks further weigh on the black liquid, which, in turn, undermines the commodity-linked Loonie and helps limit any meaningful downside for the USD/CAD pair.  Furthermore, Canada's new Prime Minister, Mark Carney, has called for a snap election in the country on April 28. This further holds back traders from placing aggressive bullish bets around the Canadian Dollar (CAD), which suggests that the path of least resistance for the USD/CAD pair is to the upside. That said, last week's failure near the 1.4400 mark makes it prudent to wait for strong follow-through buying before placing fresh bullish bets.  Moving ahead, traders now look forward to the release of flash US PMI prints later during the North American session. Apart from this, speeches by influential FOMC members and the broader risk sentiment will drive the USD demand. This, along with Oil price dynamics, should produce short-term opportunities around the USD/CAD pair. Nevertheless, the fundamental backdrop warrants caution before placing fresh directional bets. Canadian Dollar FAQs What key factors drive the Canadian Dollar? The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive. How does the price of Oil impact the Canadian Dollar? The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD. How does inflation data impact the value of the Canadian Dollar? While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar. How does economic data influence the value of the Canadian Dollar? Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The Indian Rupee gains ground in Monday’s Asian session. Fresh foreign and USD inflows support the INR. The preliminary readings of the India HSBC PMI and US S&P Global PMI reports will be the highlights later on Monday.The Indian Rupee (INR) trades stronger on Monday after closing its strongest in over two months. Positive domestic equities and fresh foreign fund inflows could provide some support to the Indian currency. Additionally, the US Dollar (USD) inflows help mitigate the impact of the decline in Asian peers. 

Nonetheless, a rebound in Crude Oil prices amid the ongoing geopolitical tensions in the Middle East might weigh on the local currency as India is the world's third-largest oil consumer.  Investors brace for the preliminary reading of India HSBC Purchasing Managers Index (PMI) data for March, which is due later on Monday. On the US docket, the advanced US S&P Global PMI will be released.  Indian Rupee holds positive ground as inflows resume Forex traders said the INR has been gaining as FPIs turned net buyers for the second time during the week with respect to equity and have been buying heavily into debt. “Given the current market dynamics, the USD-INR pair is expected to trade between 86.00 and 86.80 in the near term. However, with the current global headwinds a slight rebound towards the 86.50-86.60 range is expected," said CR Forex Advisors MD Amit Pabari. Trump has declared April 2 to be "Liberation Day" for the US, when he will implement so-called reciprocal tariffs that seek to equalize US tariffs with those charged by trading partners, as well as tariffs on sectors such as automobiles, pharmaceuticals, and semiconductors, which he has repeatedly stated would be enacted on that day. Trump's administration said that it will revoke the temporary legal status of more than half a million migrants from Cuba, Haiti, Nicaragua and Venezuela, per BBC. Those migrants have been warned to leave the country before their permits and deportation shields are cancelled on April 24. Fed policymakers projected two quarter-point cuts later this year, the same median forecast as in December.   USD/INR seems fragile, downside risks appear below the 100-day EMA The Indian Rupee trades on a firmer note on the day. The bullish outlook of the USD/INR pair looks vulnerable as the price hovers around the key 100-day Exponential Moving Average on the daily chart. The pair could resume its downside bias if it decisively crosses below the 100-day EMA. The 14-day Relative Strength Index (RSI) stands below the midline near 32.70, suggesting that further downside looks favorable. 

The first upside barrier for USD/INR emerges at 86.48, the low of February 21. Further north, the next hurdle is seen at the 87.00 psychological level. Sustained trading above this level could see a rally to 87.38, the high of March 11. 

On the other hand, a breach of the 100-day EMA of 85.97 could drag the pair lower to 85.60, the low of January 6. The additional downside filter to watch is 84.84, the low of December 19, 2024.  Indian Rupee FAQs What are the key factors driving the Indian Rupee? The Indian Rupee (INR) is one of the most sensitive currencies to external factors. The price of Crude Oil (the country is highly dependent on imported Oil), the value of the US Dollar – most trade is conducted in USD – and the level of foreign investment, are all influential. Direct intervention by the Reserve Bank of India (RBI) in FX markets to keep the exchange rate stable, as well as the level of interest rates set by the RBI, are further major influencing factors on the Rupee. How do the decisions of the Reserve Bank of India impact the Indian Rupee? The Reserve Bank of India (RBI) actively intervenes in forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, the RBI tries to maintain the inflation rate at its 4% target by adjusting interest rates. Higher interest rates usually strengthen the Rupee. This is due to the role of the ‘carry trade’ in which investors borrow in countries with lower interest rates so as to place their money in countries’ offering relatively higher interest rates and profit from the difference. What macroeconomic factors influence the value of the Indian Rupee? Macroeconomic factors that influence the value of the Rupee include inflation, interest rates, the economic growth rate (GDP), the balance of trade, and inflows from foreign investment. A higher growth rate can lead to more overseas investment, pushing up demand for the Rupee. A less negative balance of trade will eventually lead to a stronger Rupee. Higher interest rates, especially real rates (interest rates less inflation) are also positive for the Rupee. A risk-on environment can lead to greater inflows of Foreign Direct and Indirect Investment (FDI and FII), which also benefit the Rupee. How does inflation impact the Indian Rupee? Higher inflation, particularly, if it is comparatively higher than India’s peers, is generally negative for the currency as it reflects devaluation through oversupply. Inflation also increases the cost of exports, leading to more Rupees being sold to purchase foreign imports, which is Rupee-negative. At the same time, higher inflation usually leads to the Reserve Bank of India (RBI) raising interest rates and this can be positive for the Rupee, due to increased demand from international investors. The opposite effect is true of lower inflation.


 

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}WTI price declines Sunday’s discussions between Ukrainian and US officials could increase Russian Oil supply.Ukrainian Defense Minister Rustem Umerov emphasizes efforts to safeguard energy and critical infrastructure.Iraq aims to boost Oil production capacity beyond 6 million barrels per day (bpd) by 2029.West Texas Intermediate (WTI) Oil price continues to decline for the second consecutive session, trading around $68.00 per barrel during Asian hours on Monday. The drop comes as geopolitical tensions ease following discussions between Ukrainian and US officials in Riyadh on Sunday, which may lead to an increase in Russian Oil supply to global markets, according to Reuters. Efforts to negotiate a ceasefire are ongoing, with President Trump advocating for an end to the three-year war. Ukrainian Defense Minister Rustem Umerov highlighted measures to protect energy and critical infrastructure. Meanwhile, a US delegation is set to meet with Russian officials on Monday to push for a Black Sea ceasefire and broader de-escalation in Ukraine. Reuters quoted Toshitaka Tazawa, an analyst at Fujitomi Securities, who noted, "Expectations of progress in peace negotiations between Russia and Ukraine and a potential easing of US sanctions on Russian Oil pressured prices lower." He added that investors remain cautious, assessing future OPEC+ production trends beyond April. In the Middle East, Iraq is planning to expand its Oil production capacity beyond 6 million barrels per day (bpd) by 2029, according to the state news agency. Iraq's Oil ministry undersecretary, Bassem Mohamed Khodeir, stated that the country aims to achieve this goal through Oil exploration and extensive drilling efforts, citing a recent agreement with BP to redevelop four Kirkuk Oil and gas fields. WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.  

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}The Japanese Yen drifts lower against the USD for the third successive day on Monday.Weaker Japanese PMIs and a positive risk tone seem to weigh on the safe-haven JPY. The divergent BoJ-Fed policy expectations could cap any further gains for USD/JPY. The Japanese Yen (JPY) continues to lose ground against its American counterpart for the third consecutive day on Monday and weakens further in reaction to the weaker flash March Purchasing Managers' Index (PMI). Apart from this, a generally positive tone around the equity markets is seen as another factor undermining the safe-haven JPY. However, the case for further interest rate hikes, bolstered by expectations that strong wage growth could filter into broader inflation trends, might hold back the JPY bears from placing aggressive bets.  Apart from this, the recent narrowing of the rate differential between Japan and other countries should help limit deeper losses for the JPY. Meanwhile, the prospects for further policy easing by the Federal Reserve (Fed) fail to assist the US Dollar (USD) to capitalize on a three-day-old recovery move from a multi-month low touched last week and might contribute to capping the USD/JPY pair. Traders now look forward to the release of flash US PMIs for some impetus, though the fundamental backdrop seems tilted in favor of the JPY bulls.  Japanese Yen is pressured by the upbeat market mood and weaker PMI prints for March According to the preliminary estimates released earlier this Monday, the Au Jibun Bank Japan Manufacturing PMI declined from 49.0 in the previous month to 48.3 in March 2025. This marks the lowest reading since March 2024 and a ninth straight month of contraction.  Adding to this, the service sector, which had been a bright spot in Japan’s economy, also lost momentum and contracted for the first time in five months. Furthermore, the overall business outlook slipped to the lowest since August 2020, which is seen weighing on the Japanese Yen.  Reports over the weekend indicated that Trump is planning a narrower, more targeted agenda for the so-called reciprocal tariffs set to take effect on April 2. This fuels hopes for less disruptive Trump tariffs and boosts investors' confidence, further undermining the safe-haven JPY.  Results from Japan's annual spring labor negotiations revealed that firms agreed to union demands for strong wage growth for the third straight year. Moreover, inflation in Japan remains above the central bank's 2% target and keeps the door open for more rate hikes by the Bank of Japan. Moreover, BoJ Governor Kazuo Ueda said last week that the central bank wants to conduct policies before it is too late. Ueda added that achieving a 2% inflation target is important for long-term credibility and the BoJ will keep adjusting the degree of easing if the outlook is to be realized.  BoJ Deputy Governor Shinichi Uchida said that the central bank will adjust the degree of monetary easing by raising policy rates if the economic and price outlooks are to be achieved. The BoJ will continue to assess economic and financial market situations at home and abroad, he added. Meanwhile, the Federal Reserve gave a bump higher to its inflation projection, though maintained its forecast for two 25 basis points rate cuts by the end of this year. This keeps a lid on the recent US Dollar recovery from a multi-month low and should cap the upside for the USD/JPY pair.  Traders now look forward to the release of flash US PMIs, which, along with speeches by influential FOMC members, could provide some impetus. The focus, however, will be on the release of the Tokyo CPI and the US Personal Consumption Expenditure (PCE) Price Index on Friday. USD/JPY could accelerate the positive move once 150.00 is cleared decisively From a technical perspective, the USD/JPY pair needs to break out above the 200-period Simple Moving Average (SMA) on the 4-hour chart – levels just above the 150.00 psychological mark – for bulls to retain short-term control. Given that oscillators on the daily chart have just started gaining positive traction, the subsequent move-up might then lift spot prices to the 151.00 mark en route to the monthly peak, around the 151.30 region. On the flip side, the Asian session low, around the 149.30 area, might now protect the immediate downside ahead of the 149.00 mark. This is followed by the 148.60-148.55 support, which if broken decisively could make the USD/JPY pair vulnerable to accelerate the fall towards last week's swing low, around the 148.28-148.15 area en route to the 148.00 mark, and the 147.75 horizontal support. Some follow-through selling could pave the way for a slide towards the 147.30 region before spot prices eventually drop to the 147.00 mark and the 146.55-146.50 area, or the lowest level since early October touched earlier this month. Economic Indicator Jibun Bank Manufacturing PMI The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by Jibun Bank and S&P Global, is a leading indicator gauging business activity in Japan’s manufacturing sector. The data is derived from surveys of senior executives at private-sector companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Japanese Yen (JPY). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for JPY. Read more. Last release: Mon Mar 24, 2025 00:30 (Prel)Frequency: MonthlyActual: 48.3Consensus: 49.2Previous: 49Source: S&P Global  

.fxs-related-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-related-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}.fxs-related-module-related-link a{text-decoration:none;color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px}.fxs-related-module-related-link a:hover,.fxs-related-module-related-link:hover,.fxs-related-module-related-link:hover a{color:#e4871b}.fxs-related-module-related-link a:hover{text-decoration:none}@media (min-width:680px){.fxs-related-module-title{font-size:19.2px;line-height:27.2px}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}} Speaking in the Japanese parliament on Monday, Bank of Japan (BoJ) Governor Kazuo Ueda said that the central bank “will adjust the degree of monetary easing if the 2% inflation target is likely to be achieved.” Additional quotes Cannot sell long-term JGB holdings immediately; have been gradually tapering long-term JGB holdings now. BoJ reaped paper profits of 33 trillion yen from ETF holdings in fist fiscal half of 2024. Our policy purpose is to achieve stable prices, won't be disturbed by consideration for our finances. Related news BoJ’s Uchida: Will continue raising rates if the likelihood of achieving economic, price outlook rises Japan’s Kato: Will take appropriate action against excessive moves Japan Rengo's second-round wage hike agreed at 5.4%  

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span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}The Australian Dollar strengthens after the release of upbeat Judo Bank Purchasing Managers Index data on Monday.Australia’s Judo Bank Manufacturing PMI rose to 52.6 in March, while the Services PMI increased to 51.2.The US Dollar faces pressure as concerns grow over a potential economic slowdown driven by Trump’s trade policies.The Australian Dollar (AUD) strengthens against the US Dollar (USD) on Monday after two consecutive days of losses. The AUD/USD pair rises as the AUD finds support following the release of preliminary Judo Bank Purchasing Managers Index (PMI) data. Australia’s Judo Bank Manufacturing PMI climbed to 52.6 in March from 50.4 in February, while the Services PMI improved to 51.2 from 50.8. The Composite PMI also increased, reaching 51.3 in March compared to 50.6 previously. The AUD also gains traction as analysts anticipate the Reserve Bank of Australia (RBA) will keep rates unchanged in April after cutting borrowing costs for the first time in four years in February. Furthermore, expectations of Chinese stimulus boost the Australian economy. The AUD/USD pair also benefits from improved risk sentiment as the White House adjusts its tariff strategy ahead of the April 2 implementation, according to the Wall Street Journal. Moreover, geopolitical tensions ease as Ukrainian and US officials meet in Riyadh on Sunday to discuss peace efforts. Meanwhile, President Trump continues to advocate for an end to the three-year war. Australian Dollar appreciates as US Dollar struggles amid economic concerns The US Dollar Index (DXY), which tracks the USD against six major currencies, pauses its three-day winning streak and is trading lower near 104.00. The Greenback comes under pressure as concerns grow over a potential US economic slowdown, fueled by trade policies under President Trump. Meanwhile, traders await the preliminary reading of the US S&P Global Manufacturing Purchasing Managers Index (PMI) for March. However, the US Dollar gained ground after hawkish remarks from Fed Chair Jerome Powell last week, who stated, “Labor market conditions are solid, and inflation has moved closer to our 2% longer-run goal, though it remains somewhat elevated.” President Trump suggested there could be room for "talk" on trade issues with China and expressed hope for a meeting with Chinese President Xi Jinping in the near future. Earlier this month, his proposal to strengthen US shipbuilding by imposing steep fees on China-linked vessels entering American ports led to a buildup of US coal inventories and heightened uncertainty in the already struggling agriculture sector. Australia’s Employment Change dropped by 52.8K in February against the 30.5K increase in January (revised from 44K), falling short of the consensus forecast of 30.0K rise. Meanwhile, the seasonally adjusted Unemployment Rate remained steady at 4.1% in February, aligning with market expectations. China’s ruling Communist Party (CCP) central committee and State Council have suggested ambitious plans to "vigorously boost consumption" by raising wages and easing financial burdens. This latest initiative aims to restore consumer confidence and revitalize the country’s struggling economy. “We see a gradual recovery in the Australian dollar from the second quarter onward, propelled first by dollar depreciation followed by the lagged impact of China stimulus in the second half of 2025,” said Oliver Levingston, a strategist at Bank of America in Sydney. Last week, Reserve Bank of Australia (RBA) Assistant Governor (Economic) Sarah Hunter reiterated the central bank’s cautious stance on rate cuts. The RBA’s February statement signaled a more conservative approach than market expectations, with a strong focus on monitoring US policy decisions and their potential impact on Australia’s inflation outlook. Australian Dollar could test 0.6300 barrier near 50-day EMA The AUD/USD pair is hovering near 0.6290 on Monday, with technical indicators pointing to a bearish bias as the pair remains within a descending channel pattern. The 14-day Relative Strength Index (RSI) sits slightly below 50, confirming persistent bearish momentum. Immediate support is found at the lower boundary of the descending channel around 0.6240. A break below this level could strengthen the bearish outlook, pushing the AUD/USD pair toward the seven-week low of 0.6187, recorded on March 5. On the upside, initial resistance is seen at the 50-day Exponential Moving Average (EMA) of 0.6307, closely followed by the nine-day EMA at 0.6311. A breakout above these levels could boost short-term price momentum, with the AUD/USD pair potentially testing the upper boundary of the descending channel at 0.6360. AUD/USD: Daily Chart Australian Dollar PRICE Today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.   USD EUR GBP JPY CAD AUD NZD CHF USD   -0.08% -0.07% 0.31% -0.09% -0.18% 0.04% 0.06% EUR 0.08%   -0.10% -0.13% 0.03% -0.12% 0.16% 0.18% GBP 0.07% 0.10%   0.39% -0.50% -0.06% 0.26% 0.17% JPY -0.31% 0.13% -0.39%   -0.40% -0.52% -0.26% -0.27% CAD 0.09% -0.03% 0.50% 0.40%   -0.04% 0.13% 0.15% AUD 0.18% 0.12% 0.06% 0.52% 0.04%   0.29% 0.31% NZD -0.04% -0.16% -0.26% 0.26% -0.13% -0.29%   0.09% CHF -0.06% -0.18% -0.17% 0.27% -0.15% -0.31% -0.09%   The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote). Economic Indicator Judo Bank Manufacturing PMI The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by Judo Bank and S&P Global, is a leading indicator gauging business activity in Australia’s manufacturing sector. The data is derived from surveys of senior executives at private-sector companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for AUD. Read more. Last release: Sun Mar 23, 2025 22:00 (Prel)Frequency: MonthlyActual: 52.6Consensus: -Previous: 50.4Source: S&P Global  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Bank of Japan (BoJ) Deputy Governor Shinichi Uchida told the Japanese parliament on Monday that “we'll continue to access economic and financial market situations at home and abroad." "If our economic and price outlooks are to be achieved, we will adjust the degree of monetary easing by raising policy rates," he added. Market reaction At the press time, USD/JPY is adding 0.31% on the day at 149.80.
  Bank of Japan FAQs What is the Bank of Japan? The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. What has been the Bank of Japan’s policy? The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance. How do Bank of Japan’s decisions influence the Japanese Yen? The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance. Why did the Bank of Japan decide to start unwinding its ultra-loose policy? A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.  

Japanese Finance Minister Katsunobu Kato said on Monday, he “will take appropriate action against excessive moves.” It is “important for currencies to move in stable manner reflecting fundamentals,” he added.

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The Greenback remains under selling pressure amid worries over the hit to US economic growth from the US President Donald Trump administration's trade policies. US President Donald Trump has declared April 2 to be "Liberation Day" for the US, when he will implement so-called reciprocal tariffs that seek to equalize US tariffs with those charged by trading partners, as well as tariffs on sectors such as automobiles, pharmaceuticals, and semiconductors, which he has repeatedly stated would be enacted on that day.

On the Kiwi front, the ruling Chinese Communist Party’s (CCP) central committee and state council announced ambitious plans to “vigorously boost consumption” by putting up pay and reducing financial burdens in its latest attempt to increase consumer confidence and lift its struggling economy. This, in turn, might boost the China-proxy New Zealand Dollar (NZD),a as China is a major trading partner to Australia. New Zealand Dollar FAQs What key factors drive the New Zealand Dollar? The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD. How do decisions of the RBNZ impact the New Zealand Dollar? The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair. How does economic data influence the value of the New Zealand Dollar? Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate. How does broader risk sentiment impact the New Zealand Dollar? The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1780 as compared to Friday's fix of 7.1760 and 7.2496 Reuters estimate. PBOC FAQs What does the People's Bank of China do? The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market. Who owns the PBoC? The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts. What are the main policy tools used by the PBoC? Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi. Are private banks allowed in China? Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Gold price extends its downside to near $3,025 in Monday’s early Asian session. Hope for a Ukraine peace deal undermines the safe haven assets like Gold. The Fed held rates steady but maintained projections for two cuts, which might cap the downside for Gold. The Gold price (XAU/USD) extends the decline to around $3,025 during the early Asian session on Monday. The precious metal edges lower after reaching an all-time high on Thursday amid hopes for a Ukraine peace deal. However, potential rate cuts signaled by the Federal Reserve (Fed) and ongoing economic uncertainties might cap the upside for yellow metal. 

On Sunday, Ukrainian and US officials held talks in Riyadh, Saudi Arabia, resuming efforts to end three years of war as President Donald Trump pushes for a ceasefire. Ukrainian Defense Minister Rustem Umerov stated that the discussion over the weekend was “productive and focused.” 

Umerov highlighted key points, including proposals to protect energy facilities and critical infrastructure. US and Russian delegates are expected to hold separate talks on Monday. The optimistic developments surrounding Russia and Ukraine's ceasefire dampen the gold demand, a traditional safe-haven currency. 

On the other hand, the prospect of further rate reductions might help limit the non-yielding Gold’s losses. The Fed has held interest rates steady at meetings in January and March due to waiting for further progress on disinflation at the time. The US central bank sees a high degree of uncertainty in the economic outlook. Policymakers projected imply an average of two cuts in 2025, as updated last week.  

Fed Chair Jerome Powell said last week that US President Donald Trump's policies, including import tariffs, may have slowed US economic growth and increased inflation. "Gold is not even acting as a safe-haven asset yet to retail investors because technically we're not in a recession. We are seeing the slowdown in the economy and that could very well create further uncertainty and more desire for safe-haven assets,” said Alex Ebkarian, chief operating officer at Allegiance Gold. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

 

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Spot prices currently trade around the 1.2930 region, up nearly 0.10% for the day, and for now, seems to have snapped a two-day losing streak to a one-and-half-week low touched on Friday.  The US Dollar (USD) kicks off the new week on a weaker note and stalls a three-day-old recovery move from a multi-month low, which, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. Despite the fact that the Federal Reserve (Fed) gave a bump higher to its inflation projection, investors seem convinced that a tariff-driven US economic slowdown might force the central bank to resume its rate-cutting cycle soon. This, along with a positive tone around the US equity futures, seems to undermine the safe-haven Greenback.  The British Pound (GBP), on the other hand, draws support from the Bank of England's (BoE) relatively hawkish stance. In fact, the UK central bank warned against assumptions for cuts and also increased its forecast for a peak in inflation this year. This suggests that the BoE will lower borrowing costs more slowly than other central banks, including the Fed, which lends additional support to the GBP/USD pair. Moreover, the recent breakout above the 200-day Simple Moving Average (SMA) for the first time since November favors bullish traders.  Moving ahead, traders now look forward to the release of flash PMIs from the UK and the US for some meaningful impetus. Apart from this, speeches from influential FOMC members would drive the USD demand, which, along with BoE Governor Andrew Bailey's comments, should produce short-term trading opportunities around the GBP/USD pair. Nevertheless, spot prices remain within the striking distance of the highest level since November touched last week and the fundamental backdrop supports prospects for additional gains. Economic Indicator S&P Global/CIPS Composite PMI The Composite Purchasing Managers Index (PMI), released on a monthly basis by the Chartered Institute of Procurement & Supply and S&P Global, is a leading indicator gauging private-business activity in UK for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation.The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the UK private economy is generally expanding, a bullish sign for the Pound Sterling (GBP). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for GBP. Read more. Next release: Mon Mar 24, 2025 09:30 (Prel)Frequency: MonthlyConsensus: -Previous: 50.5Source: S&P Global  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/USD strengthens ahead of PMI data releases from the Eurozone, Germany, and the United States. The US Dollar struggles as Trump's trade policies fuel concerns over a potential economic slowdown. The Euro gains support from improved risk sentiment as the White House adjusts its tariff strategy before the April 2 rollout.EUR/USD pauses its three-day decline, trading around 1.0840 during Asian hours on Monday. The pair gains as concerns over a US economic slowdown, driven by trade policies under President Donald Trump, weigh on the US Dollar (USD). Investors are now focused on the preliminary March Purchasing Managers Index (PMI) data for the Eurozone, Germany, and the United States (US), set for release later in the day. The EUR/USD pair also benefits from improved risk sentiment as the White House revises its tariff strategy before the April 2 implementation. According to the Wall Street Journal, the administration is expected to drop some industry-specific tariffs while imposing reciprocal tariffs on countries with strong trade ties to the US. Additionally, geopolitical tensions ease following talks between Ukrainian and US officials in Riyadh on Sunday. Efforts to broker a ceasefire continue, with President Trump advocating for an end to the three-year war. Ukrainian Defense Minister Rustem Umerov discussed measures to safeguard energy and critical infrastructure, while US and Russian delegates are set for separate talks on Monday, according to Bloomberg. However, the Euro (EUR) faces headwinds amid concerns that Trump’s reciprocal tariffs could significantly hinder the Eurozone’s economic growth. Last week, European Central Bank (ECB) President Christine Lagarde cautioned about downside risks stemming from the Trump-led trade dispute while downplaying fears of persistently high Eurozone inflation. Adding to the uncertainty, ECB Vice President Luis de Guindos told The Sunday Times that President Trump’s policies are creating more economic instability than during the COVID-19 crisis. Similarly, Jose Luis Escriva stated on Bloomberg TV on Friday that inflation and economic growth forecasts face significant risks in both directions, making future interest rate decisions highly unpredictable. Germany, one of the US's key trading partners, is expected to bear the brunt of Trump’s reciprocal tariffs. While the US currently imposes a 2.5% tariff on German car imports compared to the Eurozone’s 10% duty, Trump has threatened to introduce a 25% tariff on foreign automobiles. Germany’s Bundestag lower house of parliament has approved measures to expand borrowing limits, injecting billions of Euros into the economy, which may cushion against potential US tariff impacts. Euro FAQs What is the Euro? The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} US President Donald Trump's administration said that it will revoke the temporary legal status of more than half a million migrants from Cuba, Haiti, Nicaragua and Venezuela, per BBC. 

Those migrants have been warned to leave the United States before their permits and deportation shields are canceled on 24 April.

The revocation might lead to some short-term disruption in the labor market, especially in industries that depend significantly on immigrant labor, such as agriculture, construction, hospitality, and healthcare. It is likely to lead therefore to higher wages, if basic supply and demand economics holds

Trump is also considering whether to cancel the temporary legal status of some 240,000 Ukrainians who fled to the US during the conflict with Russia. Market reaction  At the time of press, the US Dollar Index was down 0.13% on the day at 104.00. US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.  

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Ukrainian and US officials held talks in Riyadh on Sunday, resuming efforts to end three years of war as President Donald Trump pushes for a ceasefire, per Bloomberg. 

Ukrainian Defense Minister Rustem Umerov said that the talks on Sunday in Saudi Arabia were “productive and focused.” Umerov addressed key points including proposals to protect energy facilities and critical infrastructure. US and Russian delegates are expected to hold separate talks on Monday. Market reaction  At the time of writing, the Gold price (XAU/USD) is trading 0.02% higher on the day to trade at $3,024. Risk sentiment FAQs What do the terms"risk-on" and "risk-off" mean when referring to sentiment in financial markets? In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest. What are the key assets to track to understand risk sentiment dynamics? Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit. Which currencies strengthen when sentiment is "risk-on"? The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity. Which currencies strengthen when sentiment is "risk-off"? The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

 

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}AUD/USD drifts higher to 0.6280 in Monday’s early Asian session. Cautious RBA stance and China support underpin the Aussie. The preliminary reading of the US S&P Global Manufacturing PMI for March will be the highlight later on Monday.The AUD/USD pair gains momentum to near 0.6280 during the early Asian session on Monday. The Australian Dollar (AUD) edges higher as the Reserve Bank of Australia (RBA) keeps interest rates high and the Australian economy benefits from expected Chinese stimulus.

Analysts expect the RBA will hold rates steady next month after lowering borrowing costs for the first time in four years in February. Last week, RBA Assistant Governor (Economic) Sarah Hunter reiterated the central bank’s cautious stance on rate reductions as they want to see further evidence that inflation is under control.

Additionally, fresh stimulus measures from the Chinese government boost the China-proxy Aussie, as China is a major trading partner to Australia. The ruling Chinese Communist Party’s (CCP) central committee and state council announced ambitious plans to “vigorously boost consumption” by putting up pay and reducing financial burdens in its latest attempt to increase consumer confidence and lift its struggling economy.

“We see a gradual recovery in the Australian dollar from the second quarter onward, propelled first by dollar depreciation followed by the lagged impact of China stimulus in the second half of 2025,” said Oliver Levingston, a strategist at Bank of America in Sydney.  

Trade policies by US President Donald Trump raised concerns about the economic slowdown in the US, which has dragged the US Dollar (USD) lower. Investors brace for the preliminary reading of the US S&P Global Manufacturing Purchasing Managers Index (PMI) for March. However, the surprise upside reading could lift the Greenback and cap the upside for the pair.  Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

 

 

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} The White House is adjusting its approach to tariffs set to take effect on April 2, likely omitting a set of industry-specific tariffs while applying reciprocal tariffs aimed at countries with significant trade ties to the United States (US), per the Wall Street Journal. 

US President Donald Trump has declared April 2 to be "Liberation Day" for the US, when he will implement so-called reciprocal tariffs that seek to equalize US tariffs with those charged by trading partners, as well as tariffs on sectors such as automobiles, pharmaceuticals, and semiconductors, which he has repeatedly stated would be enacted on that day.  Market reaction At the time of press, the US Dollar Index was up 0.01% on the day at 104.15. Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas. What is the difference between taxes and tariffs? Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers. Are tariffs good or bad? There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs. What is US President Donald Trump’s tariff plan? During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.  

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The Judo Bank Australian Services PMI improved to 51.2 in March from the previous reading of 50.8, while the Composite PMI climbed to 51.3 in March versus 50.6 prior.  Market reaction At the press time, the AUD/USD pair was up 0.19% on the day to trade at 0.6285. Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.