This is what you need to know to trade today Thursday March 3:
The dollar continued to gain strength against its rivals and the US dollar index DXY hit its highest level since June 2020 during the American session on Wednesday. However, news of Russian negotiators seeking to discuss a ceasefire with Ukraine triggered a relief move and led the USD to lose interest as a safe haven. Delegations are expected to meet on Thursday and market sentiment remains cautiously optimistic. Later in the day, the eurozone’s January PPI, the European Central Bank’s monetary policy meeting minutes, weekly initial jobless claims and the US ISM Services PMI will appear on the economic calendar. FOMC Chairman Jerome Powell will testify before the Senate Banking Committee.
On the first day of his semi-annual testimony, Powell confirmed that a 25 basis point rate hike in March would be appropriate. Powell expressed concern about the prospects for inflation, saying there would be no direct effects on the US economy from sanctions on Russia. “We think we need to engage in a series of rate hikes and let our balance sheet shrink,” the president added.
Meanwhile, the Russian aggression continued early Thursday with Russian forces taking control of the city of Kherson. In addition, an official from the Donetsk separatist group said pro-Russian forces could launch targeted attacks on Mariupol unless Ukrainian forces surrender, according to the Interfax news agency.
The DXY index trades sideways near 97.50 at the start of the European session on Thursday, while the 10-year US Treasury yield, which rose nearly 10% on Wednesday, is now down 1.5% to 1.85% and futures of US stock indices are trading flat. the barrel of West Texas Intermediate WTI is up 25% since the beginning of the week and is trading at its highest level since November 2008 above $114.
The EUR/USD appears to have stabilized around 1.1100 at the start of the European session on Thursday. Data from the euro zone showed on Wednesday that annual inflation rose to 5.8% in February from 5.1% seen in January.
The USD/CAD It is trading at its lowest level since late January near 1.2600. As expected, The Bank of Canada raised its policy rate by 25 basis points on Wednesday. and noted that he will have to continue to increase the rate in future meetings.
The GBP/USD it changed direction after falling below 1.3300 on Wednesday and ended up closing the day in positive territory. The pair is trading in a relatively tight range near 1.3400 early on Thursday.
After rising to $1,950 in the middle of the week, the gold fell sharply in the second half on Wednesday and lost more than 1% pressured by rising US bond yields. XAU/USD is trading sideways above $1,920 in European morning.
The Bitcoin rallied above $45,000 on Wednesday, but struggled to maintain its upside momentum. BTC/USD is down 1% on the day at $43,500 at the start of the European session. The ethereum closed in the negative on Wednesday after testing the $3,000 level and continues to decline to $2,900 on Thursday.
Source: Fx Street

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