In February, the capacity utilisation rate in the United States was reported at 78.2%, surpassing the expected 77.8%. This figure reflects an increasing ability of the economy to utilise its productive capacity.
Additional market developments include the EUR/USD appreciating for three consecutive days, reaching fresh 2025 peaks beyond the 1.0950 mark. Meanwhile, gold prices have shown strong momentum, nearing record highs around $3,040 per troy ounce amid easing geopolitical tensions.
Cryptocurrency Market Outlook
In cryptocurrency, the Bitcoin Fear and Greed Index suggests a potential rally, setting a target of $166,000. The economic landscape is also impacted by ongoing tariff discussions, echoing historical economic advice regarding national self-sufficiency.
A higher-than-expected capacity utilisation rate of 78.2% in the United States suggests industries are producing at a strong level. This can indicate firms expect higher demand, fuelling potential inflationary pressures. If this momentum persists, monetary policymakers may feel less urgency to ease financial conditions, keeping bond yields supported.
Shifting to currencies, the recent strength seen in the euro against the dollar points to growing confidence in Europe’s outlook. A three-day appreciation to levels beyond 1.0950 could indicate a wider trend if incoming data continues to favour the eurozone. If this persists, it may put pressure on dollar bulls, particularly those positioning for near-term strength in the greenback.
Precious metals are also moving in tandem with broader sentiment. The approach towards record prices in gold around $3,040 per troy ounce suggests strong investor demand despite some calming of geopolitical strains. If this pace keeps up, it could reflect concerns about underlying economic uncertainties or long-term inflation risks.
Trade Policy Developments
In the digital asset space, Bitcoin’s Fear and Greed Index continues to signal optimism among investors. A projected move towards $166,000 implies confidence in cryptocurrency markets. If speculative interest remains high, traders may need to monitor leveraged positioning carefully in case of abrupt shifts.
Meanwhile, trade policy debates remain a key factor in broader economic expectations. Ongoing tariff discussions serve as a reminder of past economic strategies focused on developing domestic industries. If duties are introduced or adjusted, this could weigh on international trade flows and reshape pricing dynamics across multiple markets.
