Posted at 05 March 2025 / Categories Market Roundups
Market Roundup
• US All Car Sales (Feb) 2.95M, 2.83M previous
•US All Truck Sales (Feb) 13.05M forecast,12.67M previous
•US Redbook (YoY) 6.6%, 6.2% previous
•GlobalDairyTrade Price Index -0.5%,-0.6% previous
•US Milk Auction 4,209.0,4,370.0 previous
•US IBD/TIPP Economic Optimism (Mar) 49.8, 53.1 forecast, 52. previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Building Approvals (YoY) (Jan) 5.60% forecast, 5.60% previous
•00:30 Australia Building Approvals (MoM) (Jan) -0.1% forecast, 0.7% previous
•00:30 Australia Exports (MoM) (Jan) 1.1% previous
•00:30 Australia Imports (MoM) (Jan) 5.9% previous
•00:30 Australia Private House Approvals (Jan) -3.0% previous
•00:30 Australia Trade Balance (Jan) 5.680B forecast, 5.085B previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Forecast
EUR/USD: The euro surged to a three-month high against the U.S. dollar on Tuesday after Germany's conservatives and Social Democrats proposed a €500 billion infrastructure fund and reforms to borrowing rules to boost defense spending. The currency also gained as the U.S. and Ukraine prepared to sign a minerals deal following a tense Oval Office meeting between Presidents Zelenskiy and Trump. CDU/CSU leader Friedrich Merz, the likely next German chancellor, announced plans to submit a motion to exempt defense spending above 1% of GDP from the debt brake. Immediate resistance can be seen at 1.0558(23.6%fib), an upside break can trigger rise towards 1.0598(Higher BB).On the downside, immediate support is seen at 1.0483(38.2%fib), a break below could take the pair towards 1.0421(50%fib).
GBP/USD: The British pound edged higher against the U.S. dollar on Tuesday as traders assessed Trump’s tariffs on Canada, Mexico, and China amid signs of a slowing U.S. economy. Trump’s 25% tariffs on Mexican and Canadian goods took effect Tuesday, alongside a hike in Chinese duties to 20%.Investors are focused European leaders' efforts to boost military speding and provide alternative support for Ukraine.rump has paused military aid to Ukraine following his public clash with President Volodymyr Zelenskiy last week, a White House official said, deepening the fissure that has opened between the one-time allies.British finance minister Rachel Reeves is aiming to speed up the procurement of defence equipment, as Britain plans to increase military spending following Trump's call for Europe to do more to protect itself. Immediate resistance can be seen at 1.2764(23.6%fib), an upside break can trigger rise towards 1.2825(Higher BB).On the downside, immediate support is seen at 1.2681(Daily low), a break below could take the pair towards 1.2630(38.2%fib)
USD/CAD: The Canadian dollar slid to a one-month low on Tuesday as investors raised bets on further Bank of Canada rate cuts, fearing the trade war’s economic impact. Prime Minister Justin Trudeau criticized Trump’s 25% tariffs on Canadian goods as “a very dumb thing to do” and vowed immediate retaliation. In response, Trump threatened even higher tariffs, referencing a planned U.S. move to impose "reciprocal tariffs" on April 2. Markets now see a 90% chance that the BoC will cut rates by another 25 basis points on March 12, following its January reduction to 3%. The loonie was trading 0.2% lower at 1.4510 per U.S. dollar, after touching its weakest intraday level since February 3 at 1.4655.Immediate resistance can be seen at 1.4513 (50%fib), an upside break can trigger rise towards 1.3862 (38.2%fib).On the downside, immediate support is seen at 1.4366(61.8%fib), a break below could take the pair towards 1.4324 (Feb 27th low)
USD/JPY: The dollar initially dipped bit recovered most of the ground against the yen as investors were cautious amid growing concerns over tariff risks. Trump said on Monday he told leaders of Japan and China they cannot continue to reduce the value of their currencies as doing so would be unfair to the United States. Trump’s criticism of a weak yen and uncertainty on how his tariff threats could affect global growth may complicate the Bank of Japan's decision on how soon to raise interest rates.Japan is the latest to emerge as a potential tariff target, with Trump saying on Monday that he lambasted unspecified Japanese leaders by phone for killing their currency . Immediate resistance can be seen at 149.60(Daily high) an upside break can trigger rise towards 150.11(38.2%fib). On the downside, immediate support is seen at 148.17(23.6%fib) a break below could take the pair towards 147.25(Lower BB).
Equities Recap
European shares pulled back from record highs on Tuesday, joining a global sell-off as U.S. tariffs on Canada, Mexico, and China took effect. Investors grew concerned about the impact on global growth and the possibility of similar levies targeting Europe.
UK's benchmark FTSE 100 closed down by 1.27 percent, Germany's Dax ended down by 3.54 percent, France’s CAC finished the day down by 1.85 percent.
U.S. stocks closed lower on Tuesday, with the tech-heavy Nasdaq nearing correction territory, as trade tensions escalated after Trump imposed new tariffs on Canada, Mexico, and China.
Dow Jones closed down by 1.55 %percent, S&P 500 closed down by 1.22% percent, Nasdaq settled down by 0.35% percent.
Commodities Recap
Gold prices climbed on Tuesday, supported by a weaker dollar and increased safe-haven demand as trade tensions escalated after Trump imposed new tariffs.
Spot gold was up 0.6% at $2,911.88 an ounce as of 02:16 a.m. ET (1916 GMT). Bullion has gained nearly 11% so far this year and hit a record high of $2,956.15 on February 24.
U.S. gold futures settled 0.7% higher at $2,920.60.
Oil prices tumbled on Tuesday, settling near multi-month lows, as reports confirmed OPEC+ plans for an April output hike and U.S. tariffs on Canada, Mexico, and China took effect, prompting retaliation from Beijing.
Brent futures settled 58 cents lower, or 0.8%, at $71.04 a barrel. The session low was $69.75 a barrel, its lowest since September.
U.S. West Texas Intermediate (WTI) crude fell 11 cents a barrel, or 0.2%, at $68.26. The benchmark previously dropped to $66.77 a barrel, the lowest since November.