The US dollar received some support after strong inflation data was released. The Federal Reserve is still expected to ease monetary policy this year, but the timing remains uncertain. The British pound weakened on weak employment data, while gold and Bitcoin might see some correction in the near future.
EUR/USD: Dollar Bulls Regroup
- Dollar bulls received some support after strong inflation data was released in the US, despite core CPI continuing to fall slowly.
- The market still expects the Fed to maintain the status quo at the next meetings, but there is more than a 50% confidence that they will start easing monetary policy in June.
- Short positions are only recommended if the pair falls below 1.0890.
USD/JPY: Dollar Gains on Inflation Surprise
- The USD/JPY rose after US inflation data surprised analysts, leading to lowered rate cut expectations.
- The yen has been rallying for the past five days, but the markets are still expecting the Fed to pause at the March meeting and cut rates in June.
- The dollar strengthened against the yen as rate cuts seem less likely.
- Technically, there’s potential for further upside in USD/JPY.
GBP/USD Slips on Weak UK Jobs Data
- UK employment data showed signs of a slowdown. This weighed on the British pound.
- The British pound extended its losses after weak employment data was released in the UK.
- The BoE is expected to hold rates next week and cut in August, but this could be brought forward if economic data weakens further.
- Technically, GBP/USD could be headed lower with support at 1.2730.
Gold (XAU/USD) in Potential Correction
- Gold is currently trading in overbought territory.
- A decline is expected if the price falls below $2,187.
- The target price for a sell position is $2,169.
Bitcoin (BTC) Might Reach $100K Plus
- Bitcoin’s price has grown significantly this year, but the growth in new Bitcoin millionaires is slower than in previous bull markets which suggests that the current bull trend is still early-stage.
- The price of Bitcoin could rise higher than $100,00 in the coming months due to factors like continued ETF investment and the upcoming block reward halving.
Key factors affecting the market:
- US Inflation:Inflation in the US rose to 3.2% in February, higher than expected. This has caused some uncertainty in the forex market, as it affects the likelihood of the Federal Reserve raising interest rates.
- Federal Reserve Policy: The Federal Reserve’s monetary policy will significantly impact the forex market. If the Fed raises interest rates, the US dollar will likely strengthen.
- Economic Data: Economic data releases, such as retail sales and employment data, can also affect currency valuations.
Categories: Market News
