- European shares reversed yesterday’s losses supported by easing tensions on Ukraine and ECB quotes on further monetary easing. US Equities trade in positive territory too, although gains remain more contained (0.5%).
- The chairman of the Bundesbank, Jens Weidmann, said today that negative interest rates are uncharted territory and their effectiveness is debatable, but added that the quantitative easing programme is not out of the question.
- After major industrialised nations warned Moscow yesterday of tougher sanctions if they went beyond the seizure of Crimea, both parties appeared ready today to draw a provisional line under the Ukraine crisis.
- The German IFO business climate indicator weakened slightly in March, in line with expectations, as firms grew more cautious on their outlook for activity, which was probably to some extent due to the Crimea crisis.
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EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
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Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.