Daily Global Market Update – 21st March, 2025

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EUR/USD Drops Toward 1.0800

The Euro (EUR) against the US Dollar (USD) is falling toward 1.0800, breaking below its nine-day EMA at 1.0880 in early Friday trading. After failing to hold above 1.1000 this week, EUR/USD is shedding gains as the USD rebounds and Fed rate-cut bets stabilize post-FOMC. The pair’s slide from a five-month high of 1.0967 reflects technical weakness and a cautious market mood, with traders eyeing US data for the next spark.

Gold Retreats Toward Overnight Low

Gold (XAU/USD) is sliding back closer to its overnight swing low, dipping to the $3,030 area during the Asian session on Friday. This pullback is driven by a modest uptick in the US Dollar, with the US Dollar Index (DXY) edging up to 103.85. Despite hitting an all-time high of $3,058 earlier this week, gold’s safe-haven rally is pausing as traders take profits and await further US economic cues, though tariff tensions continue to support its broader uptrend.

Japanese Yen Weakens Post-Inflation Data

The Japanese Yen (JPY) is drifting lower against the US Dollar (USD), with USD/JPY climbing to 148.70 after Japan’s inflation data showed a steady 2.5% CPI for February. While the bullish bias remains intact—bolstered by expectations of tighter Bank of Japan policy—the Yen’s softness reflects a stronger USD and mixed market sentiment. Traders are watching for any hawkish signals from Tokyo to counter this slide, with resistance eyed at 149.00.

Silver Nears Weekly Low Above $33.00

Silver (XAG/USD) is flirting with its weekly low, trading just above the $33.00 mark at around $33.10 in the European session. This decline aligns with gold’s retreat and a firmer USD, pressuring the grey metal after it peaked at $34.20 earlier this month. Despite a bullish undertone from safe-haven flows, silver’s momentum is fading, with support at the nine-day EMA ($32.80) now in focus as a potential floor.

Broader Market Context

Markets are navigating a tug-of-war between a modestly stronger US Dollar and lingering global uncertainties. Gold and silver are cooling off from recent highs as profit-taking kicks in, while the Japanese Yen softens despite a bullish outlook. EUR/USD’s descent underscores USD resilience, with the Fed’s steady 4.25%-4.50% rate stance and tariff jitters shaping sentiment. As risk appetite wavers, the interplay of upcoming US releases and central bank moves will drive the next wave. Ready to trade these market moves? Create an account now and stay ahead of the curve!