Market Watch: Stagnation in Forex Markets

Financial and commodity markets analytics

Outside of the Australian and New Zealand dollars, which are off by 0.20%-0.25%, the other G10 currencies are little changed and mostly softer in narrow ranges.
Meanwhile, gold's surge has continued. It is closing in on the high set last December near $2135.40. It is up $100 an ounce since last Monday.
April WTI initially extended yesterday's pullback but found support ahead of $78 and has recovered back to session highs, just inside yesterday's range, of almost $78.90.

Asia Pacific
Tokyo's CPI jumped back in February after both the headline and core slipped below 2% in January to 1.8% (previously revised from 1.6% initially). The headline rose to 2.6% and the core is at 2.5%. The firm Tokyo CPI readings saw the dollar slip to JPY150.35. Nearby support is seen near JPY150.20. The firm Tokyo CPI reading with implications for the national report due next week and may reinforce speculation of a rate hike next month.

Europe
There are two highlights from Europe this week. First, Tomorrow's is the UK Spring budget. Second is the ECB's meeting Thursday. It is still too early to expect a rate cut. The swaps market has a cut nearly priced in for June (90%). However, a cut in growth and inflation forecasts helps set the stage. Yesterday, the euro barely traded in the pre-weekend range, and remained firm through the North American session. It has gone nowhere today and has been trading inside a $1.0840-$1.0860 range. Ideas that the UK's Spring Budget will mean a longer delay before the BOE cuts rates appeared to help sterling yesterday. It briefly rose above $1.27, which it was unable to do last week. It, too, is in a narrow range today, roughly $1.2670-$1.2695.

America
The final services and composite PMI and another look at January durable goods orders may pose some headline risk but the market may be most sensitive to the ISM services.
Around the time Powell begins to testify tomorrow, the JOLTS report on job openings and the ADP estimate of private sector employment developments will be published.

For the fourth consecutive session, the US dollar is trading inside last Thursday's range (~CAD1.3525-CAD1.3605) against the Canadian dollar.