EUR/USD is trading in a very tight, albeit directionless range just under the big figure 1.0800 during the European morning trade on Tuesday. The biggest currency pair, the euro at $1.06 per euro, is under pressure as the risk appetite of traders sour. Traders are exercising restraint due to uncertainty surrounding US tariffs and the highly anticipated outcome of US-Russia discussions concerning a potential Ukraine peace deal.
Not even the poor mood can keep EUR/USD beneath the 1.2900 mark as the European morning wears on. Meanwhile, Germany's IFO Business Climate index for March shows an improvement, albeit less than what was projected, adding to the market's cautious stance.
Gold prices are on track to break a three-day losing streak, rising slightly today as the USD softens. The prospect that the Federal Reserve could soon be returning to its cycle of cutting interest rates has given further supportive impetus to gold. Market participants are now turning their attention to Tuesday's US macroeconomic data and statements from the Federal Reserve for further direction.
Turning to today, the most widely anticipated event will be new consumer sentiment data from the United States. New business and consumer surveys should shed new light on the current trajectory of the US economy. Traders remain vigilant, paying attention to any developments in regard to potential tariff announcements by former President Trump next week, which could further influence market dynamics.