In March, Mexico’s first half-month inflation rate was recorded at 0.14%, falling short of expectations set at 0.22%. This lower-than-anticipated figure may influence economic assessments.
The AUD/USD pair has recovered following four consecutive daily declines, reaching the 0.6300 mark due to risk-on sentiment surrounding tariff news. Conversely, EUR/USD has faced downward pressure, dipping to three-week lows below the 1.0800 level as the US Dollar maintains buying interest.
Gold Prices Approach 3000
Gold prices are approaching $3,000 per troy ounce influenced by the strengthening Dollar and rising US yields. The recent decision by the US Federal Reserve to keep rates steady has sparked increased demand for risk assets globally.
Market anticipation continues as reports regarding tariffs are expected shortly. Economic surveys are set to provide insights into US economic direction, with focus on Core PCE later in the week.
Mexico’s inflation data for the first half of March came in lower than expected, registering 0.14% instead of the projected 0.22%. For traders, this weaker reading could mean shifting market expectations regarding monetary policy. If inflation continues to surprise to the downside, it could steer expectations toward a more cautious approach from policymakers.
The recovery of the Australian Dollar against the US Dollar has been notable, especially after four days of losses. The movement up to 0.6300 reflects an improved risk appetite, largely influenced by tariff-related developments. However, it’s worth watching whether this optimism will be sustained, given other factors that could impact sentiment.
Meanwhile, the Euro has struggled to maintain its footing against the strengthening Dollar, falling below the 1.0800 mark. The continued demand for the Greenback suggests that market participants remain wary, possibly in response to broader global macroeconomic factors. As long as the Dollar maintains this momentum, the Euro could face further difficulty in finding support.
Market Eyes Economic Data
Gold’s steady climb towards $3,000 per troy ounce comes alongside strength in both the Dollar and US Treasury yields. The Federal Reserve’s recent choice to leave rates unchanged has influenced investment flows, pushing traders toward risk assets. However, this has not diminished safe-haven demand for gold, which continues to attract interest given macroeconomic conditions.
Eyes remain on upcoming tariff-related reports, which could affect risk sentiment again. Additionally, economic data releases later in the week, particularly Core PCE, will help shape expectations for the US economy. Changes in these key indicators could shift how markets assess future Federal Reserve decisions, potentially causing price adjustments across multiple asset classes.
