Emerging-market currencies weakened against the dollar, with China’s yuan at its lowest since October 2012, and Standard & Poor’s 500 Index futures dropped on speculation rising U.S. inflation will spur interest rate increases. Oil in New York held below $50 a barrel.
The greenback was 0.2 percent stronger against the yuan by 12:20 p.m. in Tokyo and added at least 0.2 percent versus the currencies of South Korea, Malaysia and Thailand. The Bloomberg Dollar Spot Index is set for an eighth monthly advance. Contracts on the S&P 500 dropped 0.2 percent, while the MSCI Asia Pacific Index held a 4.3 percent February gain. U.S. oil traded at $48.73 while Brent was at $60.70 in London, the biggest gap in more than a year.
A bigger-than-forecast increase in U.S. core inflation sent the dollar soaring Thursday after Federal Reserve Chair Janet Yellen signaled this week that while inflation is still too low for an imminent rate increase, the bank’s patience has limits. U.S. fourth-quarter economic growth may be revised down today. Declining North American rig counts have failed to dent record crude surpluses, obliterating gains for the U.S. oil benchmark as signs of recovery in overseas markets send Brent to its biggest monthly advance in almost six years.
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GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
Gold price holds steady below $2,400 mark, bullish potential seems intact
Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak. The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal. Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.