The USD has decreased against the three major currency pairs. The EURUSD has improved after an early decline, while the USDJPY has dropped to session lows, testing the 200 bar MA at 150.013.
The GBPUSD rebounded from the 100 bar MA, rising to 1.2955 after reaching a low of 1.29011. President Trump is considering a two-step tariff strategy that could start on April 2nd, involving investigations into trading partners and potential tariffs on vehicle imports.
Ecb And Federal Reserve Policy
The ECB is open to discussions on rate cuts, with some officials noting current rates are neutral. US stocks are slightly up, and yields are increasing ahead of key economic data releases.
Expected US data includes home prices, consumer confidence, and new sales figures. Federal Reserve officials are set to speak at upcoming events.
US stock futures indicate a higher open, with the Dow up by 64.68 points. Yields in the treasury market are rising, signalling a steeper yield curve.
In commodities, crude oil has risen, while gold and silver prices are also up. Bitcoin has seen a decline of $300.
Upcoming Economic Data Releases
The dollar has weakened against the euro, pound, and yen. Earlier in the day, the euro-dollar pair had fallen, but it has since regained ground. Meanwhile, the dollar-yen pair continues its downward movement, now hovering around a key technical level at 150.013, where the 200-bar moving average is being tested. This suggests traders are watching closely for any reaction at this point, as a break below could invite further selling pressure.
Sterling has also benefited from this shift. It bounced from the 100-bar moving average after briefly dipping to 1.29011, now trading higher at 1.2955. This movement reflects renewed buying interest following a short-term decline.
Meanwhile, the former US president is weighing a strategy that could introduce a phased approach to tariffs, with the first set of measures potentially kicking in at the beginning of April. The plan involves investigations into select trading partners, with a particular focus on imported vehicles. While details are still under discussion, businesses operating in these sectors will be monitoring upcoming statements closely.
European policymakers remain open to discussing adjustments to interest rates. Some within the central bank argue that current rates do not exert pressure on inflation in either direction, implying that reductions could be on the table in the coming months. The Federal Reserve is also in focus, with multiple officials scheduled to speak at various events in the days ahead. These remarks, alongside economic indicators, are likely to shape expectations surrounding future policy decisions.
Equity markets reflect a generally positive tone, though gains remain modest. In the US, stock futures indicate a firmer opening, with the Dow showing a projected rise of 64.68 points. At the same time, yields in the bond market are rising, particularly at the longer end, which has resulted in a steeper curve. This shift suggests investors are pricing in changing expectations for growth and monetary policy.
Commodities have maintained strength, with crude oil ticking higher. Precious metals are also experiencing upward movement, with both gold and silver advancing. Digital assets, however, have not shared in these gains. Bitcoin, in particular, has slipped by $300, reflecting a pullback following its recent moves.
In the near term, a range of US economic releases will provide further direction. Home prices, consumer confidence levels, and newly reported sales data are set to be released soon. These figures will be key in determining the underlying strength of the economy and influencing financial markets accordingly.
