FOREX
During early Tuesday trading, the US dollar edged lower compared to other major currencies. Notably, the greenback reached a three-month peak in mid-February, coinciding with market sentiments anticipating the first rate cut now coming in June instead of the previously assumed March and May. However, following this peak, the dollar displayed some softness, a trend somewhat perplexing given the Federal Reserve's hawkish stance and the robust economic indicators showcasing the resilience of the US economy. Against this backdrop, and with significant data, such as personal expenditure, the Fed's preferred inflation gauge, slated for release this week, the dollar's risk continues to lean towards the upside.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN STOCKS
European markets opened mostly higher on Tuesday, following the overnight trend in Asia, as investors remain optimistic ahead of this week’s data.
Bull traders managed to defend support levels and keep most benchmarks inside their narrow ranges despite lacking a bullish catalyst in the short term, highlighting the lingering positive mood surrounding markets.
More market volatility will likely be on its way later today with the first batch of US data brought by the US Conference Board Consumer Confidence Index and Durable Goods orders report, alongside the Republican and Democratic primaries.
No significant data is expected from the old continent, but a speech from BoE Governor Andrew Bailey may bring increased price action on GBP pairs as well as equities listed in the FTSE-100 index.
The STOXX-50 index currently trades in the middle of its 25-point wide range, following a rebound over the lower bound, led mainly by basic materials and tech shares.
Even if a deeper correction may still be possible, the market remains above its short-term bullish trendline so far, and we won’t expect more directionality prior to this week’s macro developments.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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