Category: Analysis

Asset Summary – Monday, 24 March

GBPUSD faces potential downward pressure. The Bank of England’s cautious stance on future rate hikes, coupled with escalating international trade policy uncertainty stemming from US tariffs, creates headwinds for the pound. Concerns about UK economic growth, evident in recent data, and ongoing challenges in restoring confidence further weigh on its prospects. While unemployment remains stable and wage growth is moderating, these factors are insufficient to offset the negative influences. Meanwhile, the Federal Reserve’s indication of potential rate cuts could weaken the dollar, providing limited counter-pressure on the currency pair.

EURUSD faces downward pressure as the European Central Bank (ECB) signals a potential willingness to lower borrowing costs further, even in the face of retaliatory tariffs from the US. President Lagarde’s comments regarding the potential impact of US tariffs on Eurozone growth, coupled with de Galhau’s emphasis on the ECB’s capacity for further rate cuts, suggest a dovish stance that contrasts with the US Federal Reserve’s more cautious approach. Although market expectations for ECB rate cuts have been reduced, the possibility of easing monetary policy in the Eurozone, while the Fed holds steady, weakens the euro relative to the dollar. This divergence in monetary policy outlooks, along with concerns about the Eurozone’s economic vulnerability to trade tensions, contributes to the euro’s decline against the dollar.

DOW JONES is poised for potential gains, indicated by the gap higher in US stock futures. Last week’s increase of 1.2% suggests positive momentum, and this trend may continue as investors react to shifting trade policy signals. The market’s focus on President Trump’s tariff deadline and indications of possible flexibility or a narrower scope for the tariffs could positively influence trading. Furthermore, upcoming US PMI figures and earnings reports from KB Home and Enerpac Tool Group will provide additional data points for investors, potentially shaping the Dow’s performance in the near term.

FTSE 100 has experienced a notable upward trend since the start of 2025, with its value, as reflected in CFD trading, rising by 509 points. This represents a 6.23% increase, suggesting positive market sentiment towards the leading UK companies represented in the index. Such growth can be interpreted as a sign of economic optimism or increased investor confidence in the British economy, potentially encouraging further investment and impacting trading strategies focused on this major index.

GOLD is likely to experience continued support and potential upward price movement. Safe-haven demand stemming from economic and geopolitical risks, including impending tariffs, escalating Middle East tensions, and the ongoing Ukraine war, is driving investors toward gold. The expectation of future U.S. Federal Reserve interest rate cuts further strengthens the bullish outlook for gold, as lower rates typically decrease the opportunity cost of holding the non-yielding asset. The combination of these factors suggests a positive trading environment for gold.

Asset Summary – Friday, 21 March

GBPUSD faces potential headwinds. The Bank of England’s cautious stance on future rate hikes, combined with growing international trade tensions sparked by US tariffs, introduces uncertainty and potential inflationary pressures which might weigh on the pound. Weaker economic data and a lack of confidence in the UK economy add further downward pressure. While unemployment remains stable and wage growth is moderating, these factors may not be enough to offset the negative sentiment. Simultaneously, the Federal Reserve’s projected rate cuts offer some support to the pair, potentially limiting downside but presenting a complex trading environment.

EURUSD faces downward pressure as the European Central Bank (ECB) signals a willingness to maintain or even further ease monetary policy despite potential economic headwinds from US tariffs. President Lagarde’s remarks suggest the ECB is more concerned about growth than inflation in the face of trade tensions, diminishing the likelihood of interest rate hikes in response to tariff-induced price increases. The possibility of further ECB rate cuts, highlighted by de Galhau, contrasts with the US Federal Reserve’s projected two rate cuts, making the dollar relatively more attractive. This divergence in monetary policy expectations is driving traders to reduce their bets on euro strength, contributing to the recent decline from its near five-month high.

DOW JONES remained in positive territory for the week, indicating some resilience. While the Federal Reserve’s signals of potential rate cuts later in the year might typically boost market sentiment, the simultaneous downgrade of the economic growth forecast and raising of the inflation outlook could create headwinds, potentially limiting gains. Individual company performance, such as the negative impact of Nike and FedEx results and the positive influence of Micron Technology, also contributes to the mixed outlook for the Dow. The overall effect suggests a cautious, rather than exuberantly positive, trajectory.

FTSE 100 experienced a decline as the Bank of England opted to maintain interest rates, signaling a measured approach to future monetary policy adjustments. This decision, coupled with concerns surrounding the pace of economic recovery, negatively impacted several prominent stocks within the index. Financial institutions and industrial companies, such as HSBC Holdings, Rolls-Royce and BAE Systems, saw significant losses. Meanwhile, certain companies like Pearson and 3i experienced even greater declines. However, the housing sector, exemplified by Vistry Group’s gains, demonstrated some resilience, suggesting a mixed performance across different sectors within the index. Overall, the market’s response reflects investor apprehension towards the current economic outlook and the central bank’s cautious stance.

GOLD is experiencing upward price pressure, trading near record levels and on track for a third consecutive week of gains. This performance is largely attributed to expectations of looser monetary policy from the Federal Reserve, which reduces the opportunity cost of holding gold. Heightened geopolitical risks in the Middle East are further bolstering gold’s safe-haven appeal. Potential trade conflicts stemming from upcoming tariff deadlines are also contributing to the positive sentiment surrounding gold.

Asset Summary – Thursday, 20 March

GBPUSD is demonstrating upward momentum, likely to remain elevated as the Bank of England is anticipated to maintain higher interest rates for a longer duration compared to the Federal Reserve. This divergence in monetary policy expectations favors the pound. The market’s anticipation of shallower rate cuts by the BoE relative to the Fed strengthens the pound’s appeal. Despite recent UK economic contraction data, optimism surrounding infrastructure investments offers further support. Furthermore, the UK government’s adaptable stance regarding potential trade challenges from the US, combined with a weakening dollar driven by US economic growth and trade worries, further contributes to a positive outlook for the currency pair.

EURUSD is exhibiting a stable position around the $1.09 mark, close to recent highs. The German fiscal policy shift, involving increased borrowing for defense and infrastructure, introduces potential inflationary pressures that could support the euro. The reduced expectation of ECB rate cuts, with only two anticipated this year and a floor of 2% now priced in, diminishes downward pressure on the euro. Uncertainty surrounding geopolitical tensions, such as the trade war and the Ukraine conflict, may contribute to volatility. Overall, the combination of German fiscal stimulus and revised ECB rate cut expectations presents a scenario that could sustain or even moderately strengthen the euro against the dollar, while global events may cause fluctuations.

DOW JONES is likely to see continued positive momentum, building on Wednesday’s gains, as futures indicated an upward trajectory following the Federal Reserve’s confirmation of plans for two interest rate cuts this year. The Fed’s decision to maintain current rates while anticipating future reductions, coupled with indications of a softening economy and job market, is generally seen as favorable for equities. Despite concerns regarding inflationary pressures stemming from potential trade policies, the Fed’s perceived dovish stance is encouraging investor confidence. Furthermore, upcoming economic data, specifically jobless claims, and earnings releases from major corporations like Nike, FedEx, and Micron Technology, could provide further catalysts for shifts in the Dow’s value.

FTSE 100 is demonstrating positive momentum, evidenced by its six-day winning streak, the longest in almost a year. This upward trend suggests growing investor confidence, although caution remains as major central bank decisions loom. Expectations that both the Federal Reserve and the Bank of England will maintain current interest rates are likely contributing to this stability. Strong performance in oil stocks, led by Shell and BP, alongside gains in other sectors like industrials and retail, further supports this positive outlook. However, the departure of Hargreaves Lansdown from the index indicates a potential shift in the composition of the FTSE 100 and could have minor implications for its overall valuation.

GOLD is experiencing upward price pressure due to a confluence of factors. Anticipation of interest rate cuts by the US Federal Reserve makes the non-yielding asset more attractive to investors. Heightened geopolitical instability, specifically escalating conflict in the Middle East, is further bolstering demand for gold as a safe haven. Concerns surrounding global trade friction, including recently implemented and upcoming tariffs, also contribute to the positive sentiment towards gold’s value.

Asset Summary – Wednesday, 19 March

GBPUSD is likely to experience continued upward pressure as the differential in expected interest rate cuts between the Bank of England and the Federal Reserve favors the pound. The anticipation of sustained higher interest rates in the UK, coupled with a more cautious approach to rate reductions compared to the US, makes the pound a more attractive currency. While a recent contraction in the UK economy presented a setback, optimism surrounding planned infrastructure investments offers a potential buffer. Furthermore, a weaker dollar stemming from concerns regarding US economic growth and trade uncertainty provides additional support to the GBPUSD pair. The UK government’s willingness to negotiate around potential tariffs also contributes to a more stable outlook.

EURUSD finds support from a combination of factors, including Germany’s fiscal policy changes and shifting expectations around ECB monetary policy. The approval of increased government borrowing in Germany, particularly the investment in infrastructure, could stimulate economic growth and thus provide upward pressure on the euro. Reduced expectations for ECB rate cuts this year, suggesting a more hawkish stance, further supports the currency. The market pricing in only two rate cuts, and no longer expecting rates to fall below 2%, diminishes the potential for euro weakness stemming from monetary policy. This, alongside global factors such as developments in the trade war and the situation in Ukraine, contributes to the current trading environment for the pair, keeping it near recent highs.

DOW JONES experienced a decline alongside the S&P 500 and Nasdaq, influenced by a broader market selloff particularly impacting technology stocks. The near-term trajectory hinges significantly on the Federal Reserve’s impending policy decision and forward guidance regarding interest rates, economic growth, and inflation. While rates are anticipated to remain steady, revisions to the Fed’s projections could trigger market volatility. Concerns surrounding global trade and potential US recession continue to exert downward pressure, suggesting that the Dow’s performance will likely be sensitive to these macroeconomic factors and any shifts in investor sentiment following the Fed’s announcement.

FTSE 100 is demonstrating positive momentum, with a five-day winning streak fueled by the strong performance of bank stocks. Anticipation surrounding the Bank of England’s upcoming rate decision is a key driver, with expectations of steady rates in the short term but potential rate cuts later in the year. This outlook, coupled with significant infrastructure spending in Germany, could contribute to continued investor confidence and potentially bolster the FTSE 100’s value.

GOLD is experiencing a significant price rally, driven by a confluence of factors that are likely to sustain upward pressure. The surge to record highs above $3,040 indicates strong investor interest, primarily fueled by its perceived safe-haven status during times of geopolitical instability. Events such as the renewed escalation of conflict in the Middle East and the ongoing tensions in Ukraine are prompting investors to seek refuge in gold. Further contributing to this trend is the uncertainty surrounding global trade, exacerbated by US tariffs and the anticipation of retaliatory measures. The upcoming FOMC decision and the potential impact of Trump’s economic policies further add to the market’s apprehension, bolstering gold’s appeal as a hedge against economic uncertainty. The year-to-date gain of over 16% underscores the strength of this upward momentum.

Asset Summary – Tuesday, 18 March

GBPUSD faces potential downward pressure as the Bank of England is expected to maintain current interest rates despite a weakening UK economy and rising unemployment. The contrast between persistent inflation and lowered growth forecasts contributes to uncertainty regarding future monetary policy, potentially deterring investors. Furthermore, the anticipation of Chancellor Reeves’ upcoming Spring Statement and its updated economic projections adds another layer of caution for traders. The UK’s approach to trade negotiations, favoring the US over the EU, could also influence the currency’s value, depending on the perceived economic benefits of these relationships. All these factors suggest that the GBPUSD is likely to experience volatility and could struggle to maintain its value in the short term.

EURUSD is likely to experience upward pressure. The anticipation of Germany’s fiscal stimulus package, including significant infrastructure investment, suggests a strengthening Eurozone economy, making the euro more attractive. Reduced expectations for ECB rate cuts further support this outlook, as higher interest rates generally increase demand for a currency. Although geopolitical factors such as the trade war and the situation in Ukraine could introduce volatility, the fundamental drivers currently favor euro appreciation against the dollar.

DOW JONES is exhibiting signs of stability following gains in the previous two sessions, indicating potential for continued positive movement. Upward momentum in sectors like real estate and energy could contribute to further growth. While the broader market, particularly the tech sector, faces challenges, anticipation of unchanged interest rates from the Federal Reserve may foster investor confidence. However, caution persists due to weaker retail sales figures and ongoing economic uncertainty, potentially limiting the extent of any upward trajectory. The Federal Reserve’s upcoming policy decision will likely be a significant factor influencing future trading.

FTSE 100 experienced an upward trend, driven by positive momentum in the financial and mining sectors. Strong earnings reports and improved forecasts for companies like Phoenix Group boosted confidence in the insurance industry, while rising copper and gold prices, fueled by Chinese economic optimism and safe-haven demand, supported mining stocks. However, the gains were tempered by declines in the retail sector, particularly Tesco and Marks & Spencer, due to concerns about price pressures and competition. Additionally, AstraZeneca’s acquisition announcement led to a slight dip, indicating potential mixed investor sentiment towards large corporate deals. Overall, the index reflects a balance of positive sector-specific catalysts and concerns about broader economic trends.

GOLD is experiencing upward pressure due to a confluence of factors. Trade tensions, fueled by newly imposed tariffs and subsequent retaliatory actions, are generating concerns about economic deceleration, prompting investors to seek safe-haven assets. Concurrently, escalating geopolitical risks, highlighted by renewed conflict in the Gaza Strip and heightened tensions between the U.S. and Iran, are further bolstering demand for gold. Looking ahead, the upcoming U.S. Federal Reserve policy meeting is poised to be influential. While interest rates are expected to remain stable, the market will scrutinize updated economic forecasts and Chair Powell’s commentary for indications regarding future monetary policy, which could introduce volatility to the market, but also provide some direction on whether gold will rise further.

Asset Summary – Monday, 17 March

GBPUSD faces mixed signals. The unexpected contraction in the UK economy is likely to put downward pressure on the pound, as it suggests weakening economic fundamentals. The Bank of England’s potential reluctance to raise interest rates further could also limit GBP’s upside. However, the weakness of the US dollar, stemming from concerns about the US economy and trade tensions, might offer a degree of support to the GBPUSD pair, preventing a significant decline. The upcoming Spring Statement and updated economic forecasts could introduce further volatility, depending on the Chancellor’s fiscal plans and the OBR’s assessment of the UK’s economic outlook.

EURUSD is demonstrating potential for upward movement as positive economic developments in Germany, including an agreement on debt restructuring and increased state spending, bolster the euro. Investors are monitoring France’s credit rating by Fitch, which could introduce volatility if the rating is revised. Counteracting these positive drivers are concerns stemming from escalating trade tensions, specifically the threat of significant tariffs on EU alcoholic beverages by the US, which could pressure the euro. Geopolitical factors, such as discussions between Trump and Putin regarding the Ukraine war, also introduce uncertainty and may influence investor sentiment toward the pair.

DOW JONES faces potential headwinds as US stock futures declined at the start of the week, following its worst weekly performance since 2023. The previous week’s slide, driven by tariff concerns and recession anxieties, creates a negative backdrop. The market is awaiting retail sales data for insights into consumer spending, which could influence investor sentiment toward the Dow. Furthermore, while the Federal Reserve is anticipated to hold interest rates steady, any surprises could introduce volatility. Even positive news from Nvidia’s AI conference might not be enough to fully offset the broader market concerns impacting the Dow’s trajectory.

FTSE 100 has experienced substantial growth since the start of 2025. Trading activity on CFDs, which mirror the index’s performance, indicates an increase of 454 points, translating to a 5.55% gain. This suggests positive investor sentiment and growing market confidence in the leading UK companies represented within the index.

GOLD is exhibiting bullish behavior, driven by a confluence of factors that are likely to sustain its elevated price. Escalating geopolitical tensions, particularly in the Red Sea, and the potential for a global trade war are creating a strong safe-haven demand for the asset. This demand is further amplified by continuous purchasing from central banks and inflows into ETFs. Although the Federal Reserve’s upcoming policy meeting introduces some uncertainty, the expectation of unchanged interest rates, coupled with unease surrounding new economic policies, provides a foundation for continued strength in gold’s valuation. Therefore, the current environment points towards a potentially positive outlook for gold trading.

Asset Summary – Friday, 14 March

GBPUSD is demonstrating bullish momentum, primarily driven by a weakening US dollar stemming from economic anxieties and tariff implications. This upward pressure is compounded by the perception that the Bank of England is likely to maintain higher interest rates for a sustained period, diminishing expectations for future rate cuts. Furthermore, upcoming UK GDP data and forecasts from the Office for Budget Responsibility will provide crucial insights into the UK’s economic health, potentially further influencing the pound’s trajectory against the dollar. Traders are closely monitoring these releases to gauge the underlying strength of the British economy and its ability to support a stronger currency.

EURUSD faces a mixed outlook. The euro’s recent dip below $1.09 reflects concerns over escalating trade tensions, particularly the potential for significant tariffs on EU alcoholic beverages imposed by the US, which could negatively impact the Eurozone economy. Geopolitical risks stemming from developments in Ukraine further weigh on investor sentiment. However, the euro is finding support from Germany’s proposed €500 billion infrastructure and defense spending package, which suggests potential fiscal stimulus and increased economic activity. Moreover, indications that the European Central Bank may be nearing the end of its easing cycle are providing further upward pressure, creating a complex and potentially volatile trading environment for the pair.

DOW JONES experienced a decline following renewed trade war anxieties triggered by tariff threats, leading to a notable drop in value. While US stock futures indicate a potential rebound, the overall market sentiment remains fragile. The Dow’s performance is further influenced by softer-than-anticipated producer price inflation data, adding to existing economic uncertainty. The index’s trajectory will likely depend on developments in trade negotiations and the broader economic outlook.

FTSE 100 experienced a decline, closing lower as anxieties surrounding the potential impact of a US trade war on global economic expansion weighed on market sentiment. While some companies like Halma and AstraZeneca saw gains due to positive company-specific news, other sectors such as property development faced significant losses. Diageo’s performance was mixed, impacted by potential tariffs on EU goods but still faring better than its European counterparts, suggesting its limited exposure to the EU provided some resilience. The overall downward trend suggests that broader macroeconomic concerns are currently overshadowing positive individual company performance, indicating potential continued volatility.

GOLD is experiencing upward price pressure, reaching record highs and anticipating further gains. This is influenced by a combination of factors: global trade tensions instigated by the US, which are increasing investor uncertainty and driving them towards safe-haven assets; indications of softening inflation in the US, bolstering the likelihood of interest rate cuts by the Federal Reserve, making non-yielding assets like gold more attractive; and consistent demand from exchange-traded funds and central banks, particularly China, which are adding to the metal’s value through ongoing purchases. All of these elements are contributing to a positive outlook for gold’s price.

Asset Summary – Thursday, 13 March

GBPUSD is exhibiting a bullish outlook as the pound benefits from a weaker dollar and anticipation of sustained high interest rates in the UK. Reduced expectations for Bank of England rate cuts into 2025 are bolstering the currency. Upcoming GDP data and economic forecasts from the Office for Budget Responsibility will be crucial in shaping investor sentiment and potentially influencing the pair’s trajectory. Positive economic signals from the UK could further strengthen the pound against the dollar, while any negative surprises might trigger a correction.

EURUSD is likely to experience increased volatility and potentially upward pressure. The possibility of a ceasefire in Ukraine is a positive development that could reduce risk aversion and support the euro. However, escalating trade tensions between the US and the EU, specifically the imposition of tariffs and retaliatory measures, introduce uncertainty and could negatively impact the currency pair in the long run. The expectation of increased European defense spending and a potential shift in the ECB’s monetary policy stance, moving away from easing, could further contribute to euro strength, but any negative surprises on either front can swiftly change the EURUSD dynamic.

DOW JONES experienced a slight dip, continuing a three-day downward trend, even as broader market indices like the S&P 500 and Nasdaq Composite saw gains. While technology stocks fueled a market rebound, the Dow’s performance suggests it may not be fully benefiting from the tech sector’s strength. Factors such as newly implemented steel and aluminum tariffs and subsequent retaliatory tariffs from Canada could be weighing on the Dow, potentially impacting companies reliant on these materials or trade with Canada. The mixed signals, with positive momentum in tech countered by tariff concerns, indicate uncertainty for the Dow’s near-term direction.

FTSE 100 experienced an increase in value, driven by positive reactions to lower-than-anticipated US inflation figures, which tempered fears of aggressive monetary policy tightening. This positive sentiment outweighed concerns related to international trade disputes, particularly potential tariffs. Gains were concentrated in specific sectors, including aerospace (Rolls-Royce), banking, pharmaceuticals (AstraZeneca), and energy (Shell and BP), while a flight to safety also benefited gold miners like Fresnillo. The UK government’s stance on trade relations with the US further contributed to market optimism, suggesting a potential buffer against negative trade-related impacts.

GOLD’s price is being supported by ongoing trade disputes, which are driving investors towards the perceived safety of the metal. President Trump’s threats of new tariffs and possible copper trade protections are intensifying these concerns. Simultaneously, lower-than-expected US inflation figures are increasing speculation that the Federal Reserve may ease monetary policy, further benefiting gold. However, the future impact of tariffs on inflation remains uncertain, posing a risk that could reverse the current upward trend.

Asset Summary – Wednesday, 12 March

GBPUSD is showing potential for continued strength, as dollar weakness stemming from US economic anxieties and tariff implications provides upward pressure. Simultaneously, expectations of sustained high interest rates in the UK, driven by reduced anticipation of Bank of England rate cuts, further bolsters the pound. Market participants will be carefully analyzing forthcoming UK GDP data and forecasts from the Office for Budget Responsibility, as these economic indicators could either solidify or challenge the current positive outlook for the currency pair. A positive surprise in economic performance could drive GBPUSD higher, while disappointing figures could lead to a correction.

EURUSD is exhibiting bullish momentum as the euro benefits from increased government spending initiatives across major Eurozone economies, particularly Germany, France, and Italy, signaling a commitment to economic growth. The European Central Bank’s indication of potentially nearing the end of its loosening cycle further strengthens the euro’s position. Meanwhile, concerns surrounding economic growth in the United States are weighing on the dollar, exacerbating the upward pressure on the EURUSD exchange rate. This combination of factors suggests a continuation of the euro’s upward trend against the dollar.

DOW JONES faces a potentially volatile trading day as investors react to upcoming consumer inflation data and its implications for Federal Reserve policy. While stock futures indicate a possible rebound, recent declines across major indexes, including a significant drop in the Dow itself, suggest underlying weakness. Concerns about tariffs, particularly President Trump’s decision to increase tariffs on Canadian steel and aluminum, add further pressure. Losses in major tech companies and across all S&P 500 sectors highlight broad market unease, although Ontario’s decision to pause its electricity surcharge offers a small glimmer of hope. The Dow’s performance will likely hinge on the inflation data and the market’s assessment of the Fed’s response in light of the ongoing trade tensions.

FTSE 100 is facing downward pressure as global trade tensions escalate, particularly between the U.S. and Canada, triggering investor anxiety. The imposition and threat of tariffs raise concerns about the potential impact on international trade and economic growth, leading to market declines. While positive corporate news, such as Persimmon’s strong results and expansion plans, offers some support, broader economic worries surrounding slowing retail sales growth are likely to continue to weigh on the index’s performance.

GOLD is finding support from its safe-haven status as global trade uncertainties and recession fears persist, stemming from potential US tariff policies. A weaker US dollar also contributes to its positive performance. However, the easing of geopolitical tensions, specifically regarding US-Ukraine-Russia relations, could temper further gains. Looking ahead, the upcoming US CPI data will be crucial, as it will influence the Federal Reserve’s interest rate decisions and, consequently, the direction of gold prices.

Asset Summary – Tuesday, 11 March

GBPUSD is exhibiting positive momentum, driven by a confluence of factors favoring the pound. The dollar’s weakness, fueled by US economic uncertainty and tariff implications, is providing a tailwind. Furthermore, the pound is benefiting from expectations of sustained high UK interest rates, as markets anticipate less aggressive rate cuts by the Bank of England than previously projected. Upcoming UK GDP data and the Office for Budget Responsibility’s economic forecasts will be closely monitored for further clues about the UK’s economic trajectory, and may amplify or dampen the current bullish sentiment surrounding the GBPUSD pair.

EURUSD is exhibiting bullish momentum driven by several factors. Increased government spending commitments in major Eurozone economies, particularly Germany, are fueling expectations of stronger economic growth within the bloc. This fiscal stimulus, coupled with potential joint EU funding initiatives, reinforces the euro’s appeal. The European Central Bank’s recent policy signals, suggesting a potential slowdown in monetary easing, further support the currency. Simultaneously, growing economic anxieties in the United States are weighing on the US dollar, amplifying the upward pressure on the EURUSD exchange rate.

DOW JONES experienced significant volatility, ultimately closing down 200 points. Initial losses were tempered by news regarding a potential easing of trade tensions between the US and Canada, specifically related to steel and aluminum tariffs. However, the negative impact of declining airline stocks, particularly Delta’s reduced earnings outlook stemming from weakened US demand, weighed heavily on the index. The performance of travel-related stocks such as Disney and Airbnb further contributed to the downward pressure. Investors are now awaiting the upcoming CPI report, which is expected to provide further guidance for market direction.

FTSE 100 experienced a significant decline, falling to its lowest point in months, primarily driven by escalating global trade war anxieties. New tariffs imposed by the U.S. on Canadian steel and aluminum triggered market uncertainty and negatively impacted investor sentiment. While positive news from Persimmon, regarding increased profits and expansion plans, offered some support, it was insufficient to offset the broader market concerns. Furthermore, slower retail sales growth in February added to the negative pressure, contributing to the overall decline in the index’s value.

GOLD’s price experienced a significant surge, reaching approximately $2,900 per ounce, a movement largely attributed to a weakening U.S. dollar and an increase in safe-haven demand. Heightened apprehension regarding the U.S. economic future, fueled by escalating trade disputes and presidential comments hinting at a possible economic slowdown, bolstered gold’s appeal as a secure investment. The complex interplay of tariff impositions and retaliatory measures between the U.S., Canada, and China further intensified economic uncertainty. While the Federal Reserve acknowledged these uncertainties, their cautious approach to interest rate cuts adds another layer of complexity. Market participants are keenly awaiting upcoming U.S. inflation data, as this information could significantly impact the Federal Reserve’s future monetary policy decisions, further influencing gold’s price trajectory.

Asset Summary – Tuesday 11 March, March

GBPUSD: he GBPUSD is likely to remain supported near its recent highs due to a confluence of factors. Dollar weakness stemming from concerns about the US economy and tariffs provides a general tailwind. More specifically, expectations that the Bank of England will maintain higher interest rates for longer are making the pound more attractive to investors, as it implies a higher return on investment compared to other currencies. Upcoming UK economic data, particularly the monthly GDP figures and the Office for Budget Responsibility’s forecasts, will be closely scrutinized and could further influence the pair’s direction depending on whether they reinforce or undermine the current positive sentiment surrounding the pound.

EURUSD: he recent developments suggest a positive outlook for the EURUSD. The euro’s strength, supported by Germany’s fiscal policy shift and increased defense spending, provides upward pressure on the currency pair. While the ECB’s rate cut is typically a negative catalyst, their acknowledgment of easing restrictive policy, coupled with expectations of only limited further cuts, suggests a controlled and potentially less impactful monetary policy stance. This scenario favors a continuation of the euro’s relative strength against the dollar, potentially leading to further gains for the EURUSD. Traders should monitor upcoming economic data releases and ECB communications for confirmation of this trend.

US30: iven the information, the outlook for the US30 appears bearish. The decline in US stock futures, coupled with the significant selloff across major indices, particularly in megacap technology stocks which heavily influence the index, suggests a potential downward trajectory for the US30. Growing recession concerns, driven by factors like presidential statements and tariff implications on inflation, further dampen investor confidence. The negative revision of profit and sales forecasts by Delta Air Lines and its subsequent stock tumble highlight concerns regarding economic demand, which could cascade to other sectors included in the US30. Investors should be cautious and consider potential short positions or hedging strategies.

FTSE 100: he FTSE 100 experienced a significant drop, closing nearly 1% lower, indicating negative trading sentiment. Investor anxiety was heightened by fears of a global economic slowdown, fueled by trade tariffs and President Trump’s recession concerns. Specific sectors, including mining and financials, were heavily impacted, with prominent companies like Entain and Rolls-Royce suffering substantial losses. Overall, the trading day reflected a broad market downturn driven by macroeconomic anxieties and their potential impact on corporate performance.

Gold: he confluence of factors detailed suggests a positive outlook for gold. A weaker U.S. dollar generally makes gold more attractive to investors holding other currencies. More significantly, growing anxieties surrounding the U.S. economy, fueled by trade tensions and the President’s own statements about a “period of transition,” are driving safe-haven demand for gold, a traditional store of value during times of uncertainty. Despite the Federal Reserve’s cautious approach to interest rate cuts, the underlying economic concerns and the ongoing trade disputes are likely to continue supporting gold prices, with upcoming inflation data potentially further influencing the Fed’s actions and, consequently, gold’s trajectory.

Asset Summary – Monday 10 March, March

GBPUSD: he GBPUSD pair is likely to experience continued upward pressure in the short term. The weak dollar, fueled by US economic concerns and tariff uncertainties, provides a tailwind for the pound. More importantly, the anticipation of sustained high UK interest rates, driven by reduced expectations of Bank of England rate cuts, makes the pound a more attractive currency for investors. Traders should monitor upcoming UK GDP data and the Office for Budget Responsibility’s forecasts as these releases could significantly influence expectations regarding the UK’s economic health and consequently, the pound’s strength. Positive data releases could further bolster the pound, while weaker-than-expected figures may temper its rise.

EURUSD: he recent developments suggest potential upside for EURUSD. The euro’s stabilization around $1.08, following a significant surge triggered by Germany’s fiscal policy shift and the proposed infrastructure fund, indicates renewed investor confidence. Increased European defense spending further supports the euro, signaling economic strength and stability. While the ECB’s rate cut could have weakened the euro, their acknowledgment of less restrictive policy and hints at a pause in further cuts suggests limited downside, especially considering market expectations of only one or two additional cuts. Overall, these factors collectively create a favorable environment for EURUSD, potentially leading to further gains if the economic stimulus measures prove effective and the ECB refrains from aggressive rate cuts.

US30: iven the broad market sell-off, exemplified by the S&P 500 and Nasdaq hitting multi-week lows, and the Dow Jones Industrial Average (US30) falling significantly, the near-term outlook for the US30 appears bearish. Concerns over the US growth outlook, highlighted by President Trump’s comments and Fed Chair Powell’s acknowledgment of economic uncertainty, are likely to weigh on investor sentiment. Weakness in key sectors like communication services, tech and consumer discretionary, which have a significant weighting in the US30, further reinforces this downward pressure. The negative performance of megacap stocks, mirroring broader market sentiment, will likely pull the index lower, and traders should monitor upcoming inflation data closely for potential catalysts. The combination of these factors suggests a continuation of the downward trend for the US30 in the short term.

FTSE 100: he FTSE 100 experienced a slight decline due to a confluence of negative factors impacting investor sentiment. Concerns surrounding the potential economic repercussions of Trump’s tariffs, coupled with fears of a U.S. recession and deflationary pressures in China, created a risk-off environment. Sector-specific headwinds further contributed to the index’s weakness, with a drop in copper prices dragging down Antofagasta, and defensive stocks like AstraZeneca and Reckitt Benckiser facing selling pressure. Declines in the banking sector and profit-taking in defense and aerospace stocks further exacerbated the downward trend, suggesting a broad-based pullback rather than isolated issues.

Gold: he gold market is currently experiencing a tug-of-war between bullish and bearish factors. Heightened trade tensions, fueled by President Trump’s tariff threats against Canada and ongoing disputes with China, are creating uncertainty that typically drives investors towards safe-haven assets like gold, supporting its high price. However, the Federal Reserve’s current stance of not urgently cutting interest rates, as indicated by Chair Powell, limits gold’s potential gains because gold doesn’t offer interest payments. Investors are awaiting U.S. inflation data, which could sway the Federal Reserve’s future decisions and significantly impact gold’s trajectory. President Trump’s ambiguous comments on the economy further contribute to the market’s nervousness, potentially influencing gold’s demand.