Forex News
Asian equities trade mostly lower on Tuesday as traders remain concerned about the rising tensions in the Middle East. South Korean stocks, the benchmark Kospi, sank as much as 6.9%, the most since August 2024, amid risk-off sentiment. The Nikkei 225, Japan’s benchmark, fell 3.15% to 56,222.
The United States (US) and Israel targeted Iran's top-tier leadership and nuclear infrastructure over the weekend. US President Donald Trump said on Monday that combat operations will continue in Iran until America’s objectives are met.
Iran has launched retaliatory missile and drone strikes against Qatar, the UAE, Kuwait and the US Embassy in Riyadh, Saudi Arabia. US President Donald Trump said on Tuesday that people will find out soon what the retaliation will be to an attack on the US embassy in Riyadh and over the deaths of US military personnel during the Iran conflict.
China's stock markets also face some selling pressure on Tuesday, with the SHANGHAI, China’s main stock market index, declining 0.91% to 4,145. Meanwhile, the Shenzhen stock exchange fell 2.25% to 14,138. The Hong Kong Stock Exchange tumbles 0.87% to 25,835.
AsianStocks FAQs
Asia contributes around 70% of global economic growth and hosts several key stock market indices. Among the region’s developed economies, the Japanese Nikkei – which represents 225 companies on the Tokyo stock exchange – and the South Korean Kospi stand out. China has three important indices: the Hong Kong Hang Seng, the Shanghai Composite and the Shenzhen Composite. As a big emerging economy, Indian equities are also catching the attention of investors, who increasingly invest in companies in the Sensex and Nifty indices.
Asia’s main economies are different, and each has specific sectors to pay attention to. Technology companies dominate in indices in Japan, South Korea, and increasingly, China. Financial services are leading stock markets such as Hong Kong or Singapore, considered key hubs for the sector. Manufacturing is also big in China and Japan, with a strong focus on automobile production or electronics. The growing middle class in countries like China and India is also giving more and more prominence to companies focused on retail and e-commerce.
Many different factors drive Asian stock market indices, but the main factor behind their performance is the aggregate results of the component companies revealed in their quarterly and annual earnings reports. The economic fundamentals of each country, as well as their central bank decisions or their government’s fiscal policies, are also important factors. More broadly, political stability, technological progress or the rule of law can also impact equity markets. The performance of US equity indices is also a factor as, more often than not, Asian markets take the lead from Wall Street stocks overnight. Finally, the broader risk sentiment in markets also plays a role as equities are considered a risky investment compared to other investment options such as fixed-income securities.
Investing in equities is risky by itself, but investing in Asian stocks comes along with region-specific risks to be taken into account. Asian countries have a wide range of political systems, from full democracies to dictatorships, so their political stability, transparency, rule of law or corporate governance requirements may diverge considerably. Geopolitical events such as trade disputes or territorial conflicts can lead to volatility in stock markets, as can natural disasters. Moreover, currency fluctuations can also have an impact on the valuation of Asian stock markets. This is particularly true in export-oriented economies, which tend to suffer from a stronger currency and benefit from a weaker one as their products become cheaper abroad.
Commerzbank analysts Charlie Lay and Moses Lim note Brent crude has surged toward USD79–80 as shipping through the Strait of Hormuz is effectively halted, disrupting Oil and LNG flows. They argue that if the Middle East war drags on for months, eurozone inflation could rise by at least 1 percentage point and growth fall by a few tenths, though they assume a shorter conflict.
Hormuz disruption and eurozone impact
"Brent crude oil surged toward USD79–80 per barrel after shipping through the Strait of Hormuz, the world’s most critical oil chokepoint, was effectively halted following Iranian threats to attack vessels attempting passage."
"The disruption has also affected liquefied natural gas (LNG) shipments, with exports temporarily halted, raising energy prices."
"If, on the other hand, the war were to drag on for several months, inflation in the eurozone would probably rise by at least 1 percentage point and economic growth would be a few tenths of a percentage point lower which would be painful."
"The price of oil has jumped again today by more than 5 US Dollar per barrel to just under 80 USD."
"However, according to futures markets, the oil price is likely to fall significantly again in the summer."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- The Oil price jumps to near $$73.00 as the closure of the Strait of Hormuz prompts global supply risks.
- Iran warns of firing any ship trying to pass from Strait of Hormuz amid war with the US and Israel.
- Dovish Fed speculation has eased amid rising US factory-level inflation.
West Texas Intermediate (WTI), futures on NYMEX, trades 2.3% higher to near $73.00 during the early European trading session on Tuesday. The oil price strengthens as the closure of the Strait of Hormuz, a sea route from which 20% of global crude oil is shipped, has disrupted the global oil supply mechanism.
On late Monday, an Iranian Revolutionary Guard announced that the Strait of Hormuz had been closed and their military groups would fire on any ship trying to pass, Reuters reported.
Tehran has tightened its military activities near the Strait of Hormuz as part of its retaliation against the United States (US) for launching a series of aerial attacks and killing several of its top leaders, including Supreme Leader Ayatollah Ali Khamenei.
Meanwhile, US military forces have announced that they have destroyed command posts of Iran’s Revolutionary Guards (IRG) as well as Iranian air defense and missile launch sites, a move that has cripped Tehran’s attacking capability and could force the nation to call for a truce soon.
Going forward, fading dovish Federal Reserve (Fed) expectations for the June policy meeting could prompt concerns over the oil demand outlook in the near term.
According to the CME FedWatch tool, the probability of the Fed holding interest rates steady in the June policy meeting has increased to 53.5% from 42.7% seen on Friday.
Dovish Fed bets have squeezed after the release of the US ISM Manufacturing PMI report on Monday, which showed that its sub-component Prices Paid, a key measure of factory-level inflation, soared to 70.5 against estimates of 59.5 and the previous reading of 59.0.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
US military officials said on Tuesday that they have destroyed command posts of Iran’s Revolutionary Guards as well as Iranian air defense and missile launch sites since the start of the joint Israeli-US offensive on Saturday.
"US forces have destroyed Islamic Revolutionary Guard Corps command and control facilities, Iranian air defense capabilities, missile and drone launch sites, and military airfields during sustained operations. We will continue to take decisive action against imminent threats posed by the Iranian regime,” said US Central Command.
Market reaction
At the time of writing, the Gold price (XAU/USD) is trading 0.24% higher on the day to trade at $5,345. Meanwhile, the West Texas Intermediate (WTI) is up 2.01% on the day at $72.75.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
European Central Bank (ECB) chief economist Philip Lane said on Tuesday that a prolonged conflict could lead to a substantial spike in inflation. At the same time, it could also cause a sharp drop in output in the euro area.
Key quotes
Prolonged conflict could lead to a substantial spike in inflation.
At the same time, it could also cause a sharp drop in output in the euro area.
Directionally, a jump in energy prices puts upward pressure on inflation especially in the near-term.
The magnitude of the shock heavily depends on the breadth and duration of the conflict.
Barring any major shocks, euro area economy is growing in the neighbourhood of its potential.
Even when taking out any energy price volatility, inflation is still running above the 2% medium-term target.
This is not an environment where I see an argument in favour of taking a bit of risk on inflation.
Market reaction
At the time of writing, EUR/USD is trading 0.16% lower on the day at 1.1670.
ECB FAQs
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.
- USD/CHF appreciates as safe-haven demand increases due to the Middle East war.
- ISM Manufacturing PMI eased to 52.4 in February from 52.6, beating 51.8 expectations.
- Swiss Franc weakens on expectations that the Swiss National Bank will maintain an accommodative stance.
USD/CHF gains ground for the second successive session, trading around 0.7810 during the Asian hours on Tuesday. The pair advances as the US Dollar (USD) strengthens on heightened safe-haven demand amid the Middle East war.
President Donald Trump said the “big wave” of strikes against Iran in the ongoing conflict is still to come. Marco Rubio added that the US is preparing for a “major uptick” in attacks on Iran over the next 24 hours. The US and Israel have reportedly struck thousands of targets inside Iran, extending their joint campaign.
A Reuters report cited Ebrahim Jabari, senior adviser to the commander-in-chief of the Islamic Revolutionary Guard Corps, as saying: “The Strait of Hormuz is closed. If anyone tries to pass, the Revolutionary Guards and the regular navy will set those ships ablaze.”
On the data front, the Institute for Supply Management Manufacturing PMI eased to 52.4 in February from 52.6 in January, but exceeded expectations of 51.8. The Manufacturing Employment Index improved to 48.8 from 48.1, though it remained in contraction.
Meanwhile, the USD/CHF pair climbs as the Swiss Franc (CHF) weakens on expectations that the Swiss National Bank will maintain an accommodative policy stance. Swiss inflation held steady at 0.1% YoY in January, matching December’s reading and staying at the lower bound of the SNB’s 0%–2% price stability range.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
- Gold attracts buyers for the fifth straight day amid rising tensions in the Middle East.
- The USD stands firm near its highest level since January 20 and caps the commodity.
- The overnight failure to find acceptance above $5,400 warrants some caution for bulls.
Gold (XAU/USD) sticks to its positive bias for the third straight day and trades above the $5,350 level heading into the European session on Tuesday. Concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.
Iran's Revolutionary Guard Corps (IRGC) Navy effectively declared the closure of the Strait of Hormuz and announced that no vessels are permitted to cross the critical maritime chokepoint. Moreover, Iran continues to fire missiles and drones at several Persian Gulf countries. A drone strike that hit the US Embassy in Saudi Arabia’s capital, Riyadh, marked a further escalation of the conflict.
Meanwhile, US Secretary of State Marco Rubio stated that the US is preparing for a major uptick in attacks in Iran over the next 24 hours. This comes after US President Donald Trump said that a big wave is yet to come, underscoring the risk of a prolonged war. Moreover, the State Department urged US citizens to depart immediately from countries in the Middle East due to serious safety risks.
The XAU/USD pair, however, remains below the $5,400 mark and its highest level since late January, set on Monday. Rising geopolitical tensions continue to underpin the US Dollar's (USD) status as the global reserve currency. Furthermore, reduced bets for aggressive easing by the Federal Reserve (Fed) assist the USD to stand firm near its highest level since January 30 and caps the the non-yielding Gold.
In the absence of any relevant US macro data, the market focus will remain glued to developments surrounding the Iran war. The price action, however, warrants caution before positioning for a further appreciating move.
XAU/USD 1-hour chart
Gold bulls seem hesitant amid mixed technical setup
Last week's breakout above the $5,200 horizontal barrier was seen as a key trigger for the XAU/USD bulls. Moreover, the Gold price holds well above the rising 100-period Simple Moving Average (SMA), keeping the broader uptrend intact despite the recent volatility.
Meanwhile, the Relative Strength Index (RSI) around 59 stays above the midline without reaching overbought conditions, reinforcing a modest upside skew rather than an extended rally. Furthermore, the Moving Average Convergence Divergence (MACD) line remains below the signal line and in positive territory, with the negative histogram shrinking, which suggests fading downside momentum within a still-upward structure.
Hence, a subsequent move up could face initial resistance at the recent high around $5,390, followed by a more significant barrier at $5,410, where prior rejection coincided with stretched intraday momentum. A sustained move above $5,410 would open the way toward the $5,450 region, while failure to clear $5,390 would keep the metal consolidating within the current intraday range.
On the flip side, immediate support emerges at $5,340, with a break exposing the next downside level at $5,320, ahead of stronger backing from the 100-period SMA near $5,230. A deeper pullback would target $5,300 as an intermediate floor.
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.74% | 0.26% | 0.82% | 0.14% | -0.74% | 0.23% | 1.72% | |
| EUR | -0.74% | -0.49% | 0.06% | -0.60% | -1.47% | -0.50% | 0.98% | |
| GBP | -0.26% | 0.49% | 0.34% | -0.12% | -1.00% | -0.02% | 1.46% | |
| JPY | -0.82% | -0.06% | -0.34% | -0.62% | -1.50% | -0.47% | 0.94% | |
| CAD | -0.14% | 0.60% | 0.12% | 0.62% | -0.91% | 0.16% | 1.58% | |
| AUD | 0.74% | 1.47% | 1.00% | 1.50% | 0.91% | 0.98% | 2.48% | |
| NZD | -0.23% | 0.50% | 0.02% | 0.47% | -0.16% | -0.98% | 1.49% | |
| CHF | -1.72% | -0.98% | -1.46% | -0.94% | -1.58% | -2.48% | -1.49% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
- EUR/GBP gains ground near 0.8725 in Tuesday’s early European session.
- A significant by-election defeat for the Labour government weighs on the Pound Sterling.
- ECB’s Kocher said the central bank should be ready to move rates quickly in either direction.
The EUR/GBP cross holds positive ground around 0.8725 during the early European session on Tuesday. The Pound Sterling (GBP) softens against the Euro (EUR) amid political uncertainty in the UK and growing expectations of the Bank of England (BoE) rate cut. The preliminary reading of the Harmonized Index of Consumer Prices (HICP) from the Eurozone will be in the spotlight later on Tuesday.
Domestic political uncertainty exerts some selling pressure on the Pound Sterling. A landmark by-election loss for the Labour Party in Gorton and Denton raises questions about Prime Minister Keir Starmer's leadership.
Furthermore, traders will closely monitor potential rate cuts. While BoE Governor Andrew Bailey recently stopped short of committing to an imminent March rate reduction, the GBP remains sensitive to any signals of monetary easing. The next BoE policy meeting is scheduled for March 19.
Analysts expect the European Central Bank (ECB) to leave rates unchanged through at least mid-2026. However, a spike in oil prices has led some policymakers to suggest the central bank should be prepared to move rates in either direction if economic uncertainty persists.
ECB policymaker Martin Kocher said on Monday that the central bank should be prepared to move rates "quickly in either direction" if fresh economic threats emerge, highlighting a shift away from a pre-determined path.
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
- USD/CAD wobbles around 1.3670 as upbeat CAD due to rising oil prices has neutralized the positive impact of a firm US Dollar.
- Oil prices have risen sharply due to the war in the Middle East.
- The US Dollar strengthens on a risk-off mood, rising dovish Fed expectations.
The USD/CAD pair trades in a tight range around 1.3670 during the late Asian trading session on Tuesday. The Loonie pair consolidates as the strengthening Canadian Dollar (CAD) due to surging oil prices amid war between the United States (US), Israel, and Iran has offset the firm US Dollar (USD).
The Canadian Dollar reacts positively to soaring energy prices, given that Canada is the largest exporter of oil to the US.
Meanwhile, the US Dollar is broadly outperforming its peers as war in the Middle East has increased its safe-haven demand. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades firmly near its almost six-week high of around 98.75.
On the domestic front, market speculation for the Federal Reserve (Fed) to leave interest rates unchanged in the June policy meeting has strengthened after the release of the US ISM Manufacturing PMI report for February, which showed a sharp increase in the factor-level inflation.
The CME FedWatch tool shows that the probability of the Fed holding interest rates steady in the June policy meeting has increased to 53.5% from 42.7% seen on Friday.
The data showed on Monday that ISM Manufacturing Prices Paid – which tracks changes in prices paid for inputs such as labor and raw materials – soared to 70.5 against estimates of 59.5 and the previous reading of 59.0.
USD/CAD technical analysis
-1772514392759-1772514392761.png)
USD/CAD trades flat at around 1.3670 at the press time. The near-term bias is neutral as spot holds close to the 20-day Exponential Moving Average (EMA), which is flattening near 1.3670.
Price action since mid-February has been range-bound with a sequence of lower daily highs, while the 14-day Relative Strength Index (RSI) has been inside the 40.00-60.00 range, confirming a lack of directional momentum and keeping the pair confined within a consolidative phase rather than a trending environment.
Initial support emerges at the February 18 low of 1.3632, guarding the recent 1.3558–1.3559 area that underpins the February base and defines the lower edge of the current range. A break below this band would expose the 1.3490 low and signal that sellers are regaining control. On the topside, immediate resistance is at the March 2 high of 1.3720, where a daily close above would be needed to shift the bias back toward the upside and open the way toward the mid-1.37s.
(The technical analysis of this story was written with the help of an AI tool.)
Economic Indicator
ISM Manufacturing Prices Paid
The Institute for Supply Management (ISM) Manufacturing Index shows business conditions in the US manufacturing sector, taking into account expectations for future production, new orders, inventories, employment and deliveries. It is a significant indicator of the overall economic condition in US. The ISM Prices Paid represents business sentiment regarding future inflation. A high reading is seen as positive for the USD, while a low reading is seen as negative.
Read more.Last release: Mon Mar 02, 2026 15:00
Frequency: Monthly
Actual: 70.5
Consensus: 59.5
Previous: 59
Source: Institute for Supply Management
Gold prices rose in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 15,891.23 Indian Rupees (INR) per gram, up compared with the INR 15,775.35 it cost on Monday.
The price for Gold increased to INR 185,352.20 per tola from INR 184,000.60 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 15,891.23 |
10 Grams | 158,912.30 |
Tola | 185,352.20 |
Troy Ounce | 494,273.30 |
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
(An automation tool was used in creating this post.)
Forex Market News
Our dedicated focus on forex news and insights empowers you to capitalise on investment opportunities in the dynamic FX market. The forex landscape is ever-evolving, characterised by continuous exchange rate fluctuations shaped by vast influential factors. From economic data releases to geopolitical developments, these events can sway market sentiment and drive substantial movements in currency valuations.
At Rakuten Securities Hong Kong, we prioritise delivering timely and accurate forex news updates sourced from reputable platforms like FXStreet. This ensures you stay informed about crucial market developments, enabling informed decision-making and proactive strategy adjustments. Whether you’re monitoring forex forecasts, analysing trading perspectives, or seeking to capitalise on emerging trends, our comprehensive approach equips you with the insights needed to navigate the FX market effectively.
Stay ahead with our comprehensive forex news coverage, designed to keep you informed and prepared to seize profitable opportunities in the dynamic world of forex trading.
