This is what you need to know to trade today Tuesday March 7:
The US dollar is holding firm early on Tuesday as markets eagerly await the appearance of the FOMC Chairman, Jerome Powell, before the Senate Banking Committee at 15:00 GMT. The DXY Dollar Index is trading sideways above 104.00 after two days of declines and the 10-year US Treasury yield is in a tight range below 4%. Also on the US economic agenda will be the IBD/TIPP economic optimism index for March and the change in consumer credit for January.
On Monday, markets were undecided with Wall Street’s main indices closing virtually unchanged after opening decisively higher. As of early Tuesday, US stock index futures are posting small daily gains, reflecting participants’ willingness to stay out.
During the Asian session, the Reserve Bank of Australia (RBA) has announced that it will raise the monetary policy ratethe Official Cash Rate (OCR), in 25 basis points (bp), up 3.60% from 3.35%. Although this decision has coincided with market expectations, the pair AUD/USD has suffered a heavy fall as an initial reaction. In its monetary policy statement, the RBA has reiterated that Further monetary policy tightening will be necessary, but he has noted that the monthly Consumer Price Index (CPI) gauge suggests inflation has peaked in Australia. AUD/USD remains lower early in the European session and is trading near 0.6700.
Meanwhile, the data from China have revealed that the trade surplus widened to $116.8 billion in February from $78 billion in January, far exceeding analysts’ estimate of $81.8 billion.
He EUR/USD It hit its highest level in nearly two weeks at 1.0700 on Monday amid renewed US dollar weakness, but eased back modestly. The pair is now trading near 1.0680. The German agency Destatis reported early on Tuesday that factory orders in Germany increased 1% in Januaryagainst the market forecast of a decline of 1%, but this data has failed to trigger a reaction in the Euro.
He GBP/USD continues to move up and down in a tight range above 1.2000 for the second day in a row on Tuesday.
The pair USD/JPY it ended the first day of the week largely unchanged, despite losing ground during the European session. The pair is stable around 136.00 during the European morning on Tuesday.
Despite the poor performance of the US dollar, the price of gold struggled to consolidate gains from the previous week as the 10-year US bond yield managed to stay afloat above 3.9%. Following Monday’s downward correction, XAU/USD is trading below $1,850 early Tuesday.
After a quiet weekend, the Bitcoin extended its sideways trend on Monday. BTC/USD continues to struggle to achieve directional momentum and is trading near $22,400 early Tuesday. Similarly, the ethereum It is moving sideways for the fourth day in a row on Tuesday, now trading below $1,600.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
