Germany’s industrial production has experienced a year-on-year change, rising to -1.6% in January from the previous figure of -3.1%. This indicates a notable improvement in the country’s output.
In the Eurozone, the Sentix Investor Confidence data for March showed a recovery with a reading of -2.9, up from -12.7 in February. This positive change contributed to a rise in the EUR/USD pair towards 1.0850.
Gbp Usd Faces Selling Pressure
The GBP/USD pair faced selling pressures, trading near 1.2900 amid uncertainties related to US tariffs. Market sentiment appears influenced by a pause in the US Dollar’s downtrend.
Gold’s price stabilised around $2,900 as traders awaited further clarity from comments made by US President Donald Trump regarding the economy. His remarks suggested that the economy is navigating a “transition” phase.
The overall crypto market saw a decline of over $440 million last week, bringing the total market capitalisation to $2.66 trillion. This downturn followed Trump’s announcement about the Strategic Bitcoin Reserve, which did not meet anticipated reactions.
Consumer price inflation data indicated a strong start in 2025 with a projected increase of 0.25% for the headline CPI, while the core index is expected to edge up by 0.27%. This moderation may suggest a correction in categories that previously surged.
Germany’s industrial production figures reflect a recovery, with the latest numbers indicating a smaller annual decline compared to before. This suggests that the country’s factories are beginning to stabilise after a prolonged period of contraction. While still in negative territory, the pace of decline has eased, which could indicate that the worst may be in the past. For markets, this implies that sentiment around European manufacturing may continue to improve, particularly if data in the coming months reinforce this trajectory.
Investor confidence in the Eurozone also showed a resurgence, with the latest Sentix index rebounding strongly from its prior level. A reading of -2.9 suggests that pessimism is fading, even if optimism on a broader level remains constrained. The change supported a stronger euro, as shown by the EUR/USD pair’s rise. When confidence among investors increases, demand for European assets tends to follow. If this trend continues, we may see further support for the euro, though external factors, particularly those related to US monetary policy, will continue to exert influence.
Meanwhile, sterling came under pressure, dropping towards 1.2900 against the US dollar. The weight on the pound seems tied to concerns over trade policy, specifically surrounding US tariffs, which remain a source of uncertainty for businesses. The dollar’s previous decline had helped lift GBP/USD, but with that movement pausing, sterling struggled to find fresh buying support. Moving forward, traders will be looking for any indications of changing sentiment on tariffs or shifts in Federal Reserve policy that could create more direction for the pair.
Gold maintained its position around the $2,900 mark while markets processed comments from the US President. His reference to a “transition” phase for the economy left traders searching for further clues about future policy direction. Stability in gold prices suggests participants are waiting rather than making bold moves. Depending on how future statements develop, a more decisive shift in positioning could emerge.
Crypto Market Sees Capital Outflows
In digital assets, the past week saw declines across the board, with the total market capitalisation shedding over $440 million. This drop came after the announcement regarding a Strategic Bitcoin Reserve, an event that had been widely anticipated but ultimately failed to generate the expected rally. The disappointment among traders led to an outflow of capital. This illustrates how expectations often matter as much as the events themselves—when something does not meet forecasts, the reaction can be sharp.
Inflation data suggested that early 2025 has begun with steady price increases. The core index is set to move slightly higher, reflecting a measured pace of change. A moderation in some categories aligns with expectations that earlier price pressures may start to normalise. Broadly speaking, this could mean an adjustment phase where prices level out somewhat after a period of rapid increases. If inflation continues at a controlled pace, it may influence central bank decisions on interest rates in the months ahead.
