Forex Today: Dollar weakens amid mixed mood, eyes on mid-tier data

Eren Sengezer FXStreet

Here is what you need to know on Tuesday, March 15:

The dollar is struggling to find demand early Tuesday as markets assess the latest Russia-Ukraine headlines and the implications of surging coronavirus cases in Asia. Later in the day, January Industrial Production data from the euro area, ZEW Survey from Germany and the February Producer Price Index (PPI) from the US will be watched closely by investors.

Despite the upbeat Retail Sales and Industrial Production data from China, the Shanghai Composite Index lost nearly 5% on Tuesday as the entire Jilin province and the technology centre Shenzen went into lockdowns due to a record number of coronavirus cases.

On a positive note, Ukrainian President Volodymyr Zelenskyy's adviser said that they were expecting to reach a peace agreement with Russia within a couple of weeks at the earliest or in May at the latest. Nevertheless, US stock index futures are down nearly 0.5% in the early European session and the 10-year US Treasury bond yield is falling 1.5% at 2.1%. Although these market developments point to a risk-averse environment, the US Dollar Index is down 0.3% below 99.00 and the barrel of West Texas Intermediate (WTI) is losing more than 4% at $98.00.

EUR/USD closed the first day of the week little changed near 1.0900 and gained traction early Tuesday. The pair was last seen testing 1.1000.

GBP/USD trades in positive territory near 1.3050. The data published by the UK's Office for National Statistics revealed that the ILO Unemployment Rate declined to 3.9% in three months to January from 4.1%.

Gold registered large losses on Monday and stays under heavy bearish pressure on Tuesday. XAU/USD was last seen losing nearly 1% on a daily basis at $1,935.

Despite the broad-based dollar weakness, USD/CAD is clinging to modest daily gains near 1.2850 as falling crude oil prices make it difficult for the commodity-sensitive loonie to find demand.

USD/JPY reached its highest level since January 2017 at 108.44 during the Asian trading hours on Tuesday but reversed its direction. Pressured by retreating US T-bond yields, the pair trades below 118.00 in the early European session.

Bitcoin rose nearly 5% on Monday but turned south on Tuesday after failing to reclaim $40,000. Ethereum staged a rebound on Monday but failed to hold above $2,600. ETH/USD was last seen falling toward $2,500, losing more than 2% on the day.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.