The financial markets are abuzz with a series of developments ranging from political discourse to economic updates. A notable event unfolded as Ukraine's President Volodymyr Zelenskyy faced a stern confrontation at the White House, sparking global discussion. Concurrently, US President Donald Trump made waves with his announcement of a new 'Crypto Strategic Reserve' on his Truth Social platform, which temporarily boosted the price of Cardano (ADA) on Sunday. Meanwhile, the Eurozone's inflation data for February indicated a slight easing in consumer prices, influencing market expectations and the European Central Bank's (ECB) monetary policy.
The Eurozone Harmonized Index of Consumer Prices (HICP) rose by 2.4% year-on-year (YoY) in February, compared to a 2.5% increase in January, aligning closely with the market forecast of 2.3%. This moderation is significant as it remains above the ECB's inflation target of 2.0%, impacting the market's pricing of potential ECB interest rate cuts. On a monthly basis, the bloc's HICP increased by 0.5% in February, reversing January's decline of 0.3%.
In terms of core inflation, the Eurozone's HICP recorded a modest rise of 0.6% month-over-month (MoM) in February, rebounding from a 0.9% decline in January. Year-on-year, the core HICP advanced by 2.6%, meeting market expectations and slightly lower than January's 2.7% increase. This data supports the Euro, contributing to EUR/USD's daily recovery towards 1.0450 during Monday’s European session.
The geopolitical tension surrounding the White House incident involving President Zelenskyy and potential US tariffs have capped further market gains. Amid these tensions, the GBP/USD maintained mild gains above 1.2600, bolstered by a retreat in the US Dollar and optimism over a possible truce in the Ukraine conflict.
On the cryptocurrency front, Cardano (ADA) experienced a remarkable surge on Sunday, climbing over 70% following President Trump's announcement of the US 'Crypto Strategic Reserve.' However, by Monday, Cardano's price had retraced by 11.5%, trading around $1. This volatility reflects broader uncertainties in the cryptocurrency market and geopolitical developments.
Meanwhile, gold prices held steady on Monday after an initial surge during the Asian session. Investors continue to seek direction amid fluctuating market sentiments driven by economic data releases and geopolitical news.