What you need to take care of on Monday, March 6:
The Greenback lost ground on Friday and finished the week lower. Positive data from China and a retreat in US yields kept the DXY in negative territory. US Stocks posted weekly gains after sharp losses in February. The improvement in market sentiment contributed to weakening the Dollar, which posted the first weekly loss in a month after a positive February.
It could be a quiet start to a busy week that will bring new information, interest rate decisions and fresh guidance from central banks. The Reserve Bank of Australia will have its meeting on Tuesday (25 bps rate hike expected) and the Bank of Canada on Wednesday; Fed Chair Powell will testify to Congress (Tue/Wed) on the Semiannual Monetary Policy Report. China will report trade (Tuesday) and inflation (Thursday).
The key day will be Friday with the Non-farm payrolls report; Canada will also release employment data. During the weekend, China's annual "Two Session" (parliamentary meeting) kicks off. The Chinese government is set to formalize government titles and announce its GDP target.
EUR/USD posted a modest weekly gain, enough to become the best performance since early January. The rebound occurred from the 20-week Simple Moving Average and was capped below 1.0700. Eurozone inflation data triggered a decline in European bonds. Rising EZ yields helped the Euro.
The benefit from the agreement between the United Kingdom and the European Union was short-lived for the Pound. GBP/USD continues to move sideways, supported by 1.1900, unable to retake 1.2000. EUR/GBP rebounded back to the 0.8850 area.
The Japanese Yen finished the week mixed despite higher yields. USD/JPY is facing a strong resistance around 137.00. EUR/JPY posted the highest weekly close since November, but it was far from the highs below 145.00.
Among majors, the New Zealand Dollar was the best performer. Back in February, the Reserve Bank of New Zealand raised the OCR by 50 basis points to 4.75%, signalling further hikes ahead. NZD/USD rose after four weekly slides, still unable to rise above the 20-day SMA at 0.6260.
Considering the most traded currencies globally the Chilean Peso (CLP) and the Mexican Peso (MXN) were the week's biggest gainers. USD/MXN dropped below 18.00 for the first time since 2018.
Yields remain relevant for currencies, with the US 10-year at 4% and the German 10-year at 2.70%, the highest weekly close since 2011. Bond market volatility is expected to continue next week.
Gold had the best week since January, recovering from two-month lows to the $1,850 area despite higher yields. Price rose constantly since Monday. Silver ended a negative six-week streak, climbed from four-month lows, back above the $21.00 area. The outlook for metals has improved with the bond market still representing a critical risk in both directions.
Oil prices finished the week up by around 4%. On Friday prices rose almost 2% after being down 3% on reports that the United Arab Emirates (UAE) is having an internal debate about leaving the Organization of the Petroleum Exporting Countries (OPEC). The latest round of US and Chinese economic activity data helped prices hold above YTD lows but not enough to boost WTI back above $80.00.
Cryptocurrencies failed to benefit from higher equity prices and a weaker Dollar. Bitcoin lost more than 4% on Friday, to the lowest level in four weeks, hit by Silvergate woes.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.