EURUSD
European stock markets were slightly up on Tuesday, showing confidence despite concerns about higher oil prices and a slowdown in manufacturing activity data.
The DAX in Germany traded 0.1% higher, the CAC 40 in France climbed 0.1%, and the FTSE 100 in the UK rose 0.2%.
The European Central Bank (ECB) recently raised interest rates by 50 basis points, indicating more hikes are expected, with President Christine Lagarde stating that underlying inflation remains “significantly too high”.
Further ECB interest rate hikes are likely to be data-dependent, and German exports posted their biggest monthly rise since June in February.
Investors should continue to monitor developments in the ECB's monetary policy and keep an eye on economic data, especially on German exports, as it may impact the EUR/USD exchange rate.
Closing Statement: Despite concerns regarding oil prices and manufacturing data, European stock markets traded slightly higher today, while the ECB's interest rate hike and German exports data are showing signs of optimism for the EUR/USD exchange rate.
GBPUSD
GBP/USD is currently testing new highs at 1.24809 after a long time.
The US dollar, as measured by the DXY index, was slightly down from Monday's close.
Fed Governor Lisa Cook has expressed that she still expects interest rates to rise, but the market for short-term interest rate futures suggests that the next Fed hike will be the last.
Today, the US Job Openings and Labour Turnover Survey (JOLTS) report is being released with a forecast of 10.49 million jobs.
Closing Statement: While GBP/USD continues to trend higher, the market is watching closely for the results of today's JOLTS report and the Fed's next moves regarding interest rates.
CRUDE OIL
Crude oil prices continue to rise after the recent surprise production cut by OPEC+.
The latest decision by OPEC+ brings the total volume of cuts to 3.66 million bpd.
Most analysts raised their oil price forecasts to around $100 per barrel by year-end due to OPEC+ production cuts.
However, rising oil prices have raised concerns about higher costs for businesses and consumers, leading to fears of an inflationary jolt to the world economy.
Investors are watching closely to see if crude oil can break above the strong resistance level of $82/$83.
Closing statement: While higher oil prices may worry central banks and raise concerns about inflation, the market is keeping a close eye on crude oil prices to see if it can break above the key resistance level of $82/$83.
GOLD
Gold prices could see new all-time highs in 2023 and beyond, making it an attractive investment option.
With global manufacturing activity remaining in contraction through March, investors are growing increasingly worried about a potential economic slowdown.
Gold has seen a resurgence in safe haven demand, particularly in March, when it retouched the $2,000 level.
Investors will be closely watching the U.S. nonfarm payrolls data, set to be announced on Friday, for further cues on the labour market.
Closing Statement: Despite concerns surrounding global manufacturing and elevated inflation levels, gold remains an attractive investment option with potential for further gains in the future.
NASDAQ
Nasdaq has broken through the ceiling of a falling trend channel in the medium long term is currently testing resistance at around 13200 level zone.
For Q1, the NDX gained 20.8% marking its best first quarter since 2012.
The prospect of higher oil prices could add further unease to Wall Street as the output cut decided by OPEC+ plays out.
Closing statement: Nasdaq 100 is poised to end the quarter on a high note, boosted by the Fed's stimulus and strong performance in the tech sector. Investors will now look forward to the upcoming earnings season to see if the positive trend continues for the big players in the industry.