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The US Dollar (USD) lost ground this week amid geopolitical uncertainty and the United States (US) trade policy developments after the Supreme Court ruled the Trump administration's tariffs illegal and he responded with a fresh round of levies. On another note, the release of a stronger-than-expected Producer Price Index (PPI) data couldn’t revive the Greenback.
The US Dollar Index (DXY) is trading near the 97.60 price region, losing around 0.20% in the day and closing the week with a mild decline as traders are cautious amid geopolitical and trade uncertainty.
EUR/USD is trading near the 1.1810 price zone, regaining some ground during the American session as the flash German Harmonized Index of Consumer Prices (HICP) for February was released lower than expected at 2% YoY from the 2.1% expected, and 0.4% from the 0.5% MoM. Additionally, investors assessed European Central Bank (ECB) Christine Lagarde’s testimony before the European Parliament. She insisted that inflation is on track to return to 2% over time, with food price pressures gradually easing into 2026. She also said she won’t be leaving her position before her term ends, erasing speculation of another ECB Chair for now.
GBP/USD is trading near the 1.3470 level, recovering some ground after almost retouching the one-month low it hit earlier this month. On another note, Bank of England (BoE) Governor Andrew Bailey signaled that there is scope for rate cuts, amid expectations that inflation will return to the 2% target.
USD/JPY is trading near the 156.00 price zone, in a neutral zone after recovering almost all its intraday losses. Tokyo’s Consumer Price Index (CPI) rose 1.6% YoY in February, with the ex Fresh Food print slipping below the Bank of Japan (BoJ) 2% target for the first time since 2024.
AUD/USD is trading close to the 0.7120 level, trading on a green note after reversing its losses. Market focus now shifts to Australia’s TD-MI Inflation Gauge due on Monday.
USD/CAD is trading close to the 1.3630 price zone, reaching an almost two-week low as investors digested US and Canada data. The Canadian Gross Domestic Product (GDP) contracted at an annualized rate of 0.6% in the fourth quarter, following a revised 2.4% growth in the previous quarter, according to Statistics Canada.
Gold is trading near $5,260, reaching a one-month high amid geopolitical uncertainty. The yellow metal is trying to regain the all--time high of $5,598 it reached earlier this year.
Anticipating economic perspectives: Voices on the horizon
Sunday, March 1:
ECB's Nagel.
Monday, March 2:
ECB's Elderson.
ECB's Nagel.
ECB's President Lagarde.
BoE's Ramsden.
RBA Governor Bullock.
Tuesday, March 3:
BoJ Governor Ueda
Fed's Williams.
ECB's Sleijpen.
ECB's Kocher.
Fed's Kashkari.
Wednesday, March 4:
ECB's Cipollone.
BoC's Governor Macklem.
ECB's De Guindos.
Thursday, March 5:
ECB's De Guindos.
ECB's Kocher.
ECB's President Lagarde.
Friday, March 6:
ECB's Cipollone.
Fed's Daly.
Fed's Hammack.
Fed's Paulson.
Central banks' meetings and upcoming data releases to shape monetary policies
Monday, March 2:
Australian TD-MI Inflation Gauge.
Chinese February RatingDog Manufacturing PMI.
German January Retail Sales.
Swiss January Real Retail Sales.
Spain February HCOB Manufacturing PMI.
Italy February HCOB Manufacturing PMI.
Germany February HCOB Manufacturing PMI.
Canadian February S&P Global Manufacturing PMI.
US February ISM Manufacturing Employment Index.
US February ISM Manufacturing New Orders Index.
US February ISM Manufacturing PMI.
US February ISM Manufacturing Prices Paid.
New Zealand January Building Permits s.a.
Japanese January Unemployment Rate.
Tuesday, March 3:
Australian January Building Permits.
Eurozone HICP.
Italian February flash CPI.
Australian AiG Industry Index.
Australian February S&P Global Composite PMI.
Australian February Global Services PMI.
Wednesday, March 4:
Australian Q4 GDP.
Chinese February NBS Manufacturing PMIs.
Chinese February RatingDog Services PMI.
Swiss February CPI.
Spain Feb HCOB PMI.
Germany Feb HCOB PMI.
Eurozone Feb HCOB PMIs.
Eurozone Jan PPIs.
Italian Q4 GDP.
US ADP Employment Change.
US S&P Feb Global Composite PMI
US Feb ISM Services Employment Index.
US Feb ISM Services New Orders Index.
US Feb ISM Services PMI.
US Feb ISM Services Prices Paid.
US Fed's Beige Book.
Thursday, March 5:
Australian January Trade Balance.
Eurozone January Retail Sales
US February Challenger Job Cuts
US Initial Jobless Claims
US flash Nonfarm Productivity
US flash Unit Labor Costs (Q4).
Friday, March 6:
Germany January Factory Orders n.s.a.
Eurozone Employment Change (Q4).
Eurozone GDP (QoQ) (Q4).
US February Average Hourly Earnings.
US February Labor Force Participation Rate.
US February Nonfarm Payrolls.
US January Retail Sales.
US February U6 Underemployment Rate.
US February Unemployment Rate
Canadian February Ivey PMIs.
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