In March, the Eurozone HCOB Composite PMI reported at 50.9, above the expected figure of 50.4. This marks a continued expansion in the economic activity within the region.
The EUR/USD currency pair briefly peaked at 1.1150 before declining by approximately 100 pips, maintaining solid gains amid a weakening US Dollar.
Eurozone Composite Pmi Signals Continued Expansion
GBP/USD traded near 1.3200, supported by a decline in the US Dollar to a year-to-date low, driven by concerns over tariffs affecting the US economy.
Gold prices fell below $3,100 after reaching a record high, as traders took profits amid potentially overbought market conditions.
In the cryptocurrency space, Solana (SOL) increased nearly 2%, trading at 118.28, while a Decentralised Exchange (DEX) and a meme coin launchpad on its blockchain competed for user engagement.
What we’ve seen recently is a modest upward movement in Eurozone economic activity. The expansion, though not dramatic, registers above neutral at 50.9—suggesting output is still growing, just at a slow pace. Markets generally read this as a sign that the region isn’t contracting, even if growth remains subdued. Composite surveys like these matter to traders because they combine both manufacturing and service outputs, offering a more comprehensive signal. A figure above 50 indicates expansion, whereas below suggests contraction. Reactions tend to be sharper when the reported figure surprises. In this case, it came in slightly ahead of estimates, but not by much—limiting any aggressive repositioning.
As for EUR/USD, the pair’s rally up to 1.1150 appears to have run into resistance, with momentum fading after the initial spike. From our side, that retreat of roughly 100 pips is broadly in line with an overstretched move encountering exhaustion, especially with limited new macro data to support a sustained push higher. It’s not uncommon to see consolidations like this after a strong burst. More telling is what comes next—if bulls return near 1.10 or if dollar bears continue to unwind. It’s worth keeping an eye on yield differentials and bond market stability here.
Sterling Strength Driven By Dollar Weakness
Sterling, trading close to the 1.3200 level, seems to be benefiting more from US Dollar pressure than anything coming from the UK directly. A weaker greenback, driven in part by concerns over the economic drag of tariffs, is pulling down DXY and supporting risk-sensitive currencies. The Dollar Index recently broke lower, and that drop is feeding into a higher GBP/USD cross. One must be mindful, though, that much of this movement is reactive. If US officials dial back tariff concerns or if economic numbers surprise, this could reverse fast. For now, momentum favours upside in Sterling—but the move is still at the mercy of external rather than domestic forces.
Now, gold. Spot prices dropped below $3,100 after printing a fresh high, which isn’t surprising. Traders who bought the breakout likely saw this as an opportunity to take profits, especially with RSI and other oscillators flashing overbought signals for days. When stretched price moves meet cautious macro headlines, reversals are often fast and sharp. This doesn’t suggest a broader change in trend yet, but we may enter a short period where prices unwind a bit of froth before reassessing. Real yields should be monitored closely. If they continue sliding, gold could stage another rebound.
On the crypto side, Solana’s 2% gain is modest yet consistent with its recent behaviour—especially with heightened activity on its blockchain. As new Decentralised Finance tools launch, particularly ones that promote meme-based tokens and faster trading, the chain naturally sees more volume. These smaller DeFi expansions don’t guarantee long-term adoption, but they tend to draw energy in the short-term. And in this market, attention flows quickly to chains with user uptake. Keeping track of daily active addresses and total value locked could give clearer guidance about whether this pickup has legs or is just speculative churn.
From a positioning standpoint, it’s worth noting that we’ve entered a phase where divergences across asset classes have become more pronounced. The US Dollar doesn’t align neatly with US equities or commodities at the moment, and that’s giving directional traders fewer clean setups. For derivatives traders, correlation dashboards and volatility-adjusted strategies may offer more actionable signals than directional plays based on macro news alone. Watch implied volatility curves—changes at the front-end could announce short-term shifts in sentiment well ahead of headlines.
