Uncertainty surrounding next week's U.S. tariff announcement continues to weigh on financial markets, limiting short-term confidence. The U.S. dollar is mostly consolidating against major global currencies, with the British pound showing the weakest performance due to a softer CPI report. Meanwhile, the Norwegian krone and dollar bloc currencies are the strongest. Emerging market currencies are also mixed, with the Mexican peso losing about 0.25%. Stock markets in the Asia Pacific region mostly saw gains, while European indices are giving back previous advances.

Asia Pacific Markets

The Japanese yen remains under pressure as the dollar recently reached a multi-week high near JPY151 before pulling back. Despite strong U.S. Treasury yields, sellers emerged at higher levels, keeping the dollar in a narrow trading range. Investors are closely watching economic indicators in Japan, as producer prices for services slowed slightly in February.
Meanwhile, the Australian dollar continues its recovery, reaching a three-day high. Australia's inflation rate eased slightly, and the government introduced unexpected fiscal stimulus measures, including tax cuts and expanded energy rebates. These policies are seen as a pre-election move, increasing the projected budget deficit but not altering expectations for interest rate cuts by the central bank.

European Markets

The euro rebounded after briefly falling below $1.0780 but remains under pressure, having declined for five consecutive sessions. The currency is currently fluctuating within a narrow range, with significant option expirations potentially influencing short-term movements. The eurozone has a light economic calendar this week, leaving investors focused on external factors.
In the UK, the British pound weakened after inflation data showed a slower-than-expected rise in consumer prices. The core inflation rate also declined slightly, although services inflation remained stable. Market attention now shifts to fiscal policy, with Chancellor Reeves set to deliver the Spring Budget Statement, where austerity measures are expected to take precedence over tax hikes or increased borrowing.

American Markets

The U.S. dollar index has stabilized after recovering about 1.25% from last week's lows. It recorded five consecutive sessions of gains before consolidating. The U.S. economy is showing signs of slowing, with economic weakness previously seen mostly in survey data now expected to appear in real-sector figures. Durable goods orders for February are likely to have declined after a strong January increase. Looking ahead, March nonfarm payroll data is projected to show job growth of around 120,000, the lowest since last October. The Federal Reserve anticipates economic growth slowing to a trend level of 1.7% in 2024. However, concerns persist that government spending cuts, high tariff uncertainty, and immigration policies could weigh more heavily on the economy.