The main EUR/USD currency exchange rate moved a lot on Tuesday, near 1.0830 in the European morning. The Euro continued to advance despite German IFO Business Climate Index coming in a little weaker than expected in March. This comes as traders turn their attention to upcoming U.S. macroeconomic data and Federal Reserve commentary for further market direction.
In the European Session, the EUR/USD pair began to rally from the 1.2950 area. This increase was mostly driven by a decrease in the value of the U.S. Dollar. The dollar weakened precipitously with each successive headline with new tariffs. Investors are just as excited about a possible peace settlement between Russia and Ukraine. These factors have led to the Euro’s rise during a time when global economic uncertainty has shaken many currencies.
That provided bullish impetus for gold prices to generate bullish momentum, breaking a three-day losing streak as the greenback weakened. Market speculation drove the precious metal up. Wanting to believe, investors are betting that the Federal Reserve will be forced to resume its rate-cutting cycle sometime soon. The currency and commodities markets are changing by the minute. These changes reflect the macroeconomic environment overall, underpinned by geopolitical strife and a move toward fiscal restraint.
What U.S. President Donald Trump has said so far has had an enormous impact on financial markets. Investors are waiting with bated breath to see the latest U.S. Consumer Confidence data. Comments like these have only served to exacerbate the present market upheaval. Expectations are finely tuned for trade signals, particularly when they emanate from the world’s top three markets.
Essentially, this is not investment advice — the author and FXStreet are not registered investment advisors. This article is for informational purposes only and does not constitute investment advice. The opinions expressed in this blog are not necessarily those of FXStreet or its sponsors.