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Daily Global Market Update – 26th March, 2025

Market Update: March 26, 2025

As global markets continue to adjust to evolving economic conditions, currency pairs and commodities are reacting to shifting risk sentiment, economic indicators, and central bank expectations. Traders are closely monitoring the latest developments in key assets such as the US Dollar, gold, oil, and major currency pairs like EUR/USD and NZD/USD for potential opportunities and risk management.

NZD/USD Surpasses 0.5700 Amid Renewed Bullish Bias

The New Zealand dollar (NZD) has strengthened, trading above the 0.5700 mark against the US dollar (USD). This rise is attributed to a renewed bullish sentiment, with the NZD/USD pair finding initial resistance near the nine-day Exponential Moving Average (EMA) at 0.5750. Technical analysis indicates a strengthening bullish bias, supported by the 14-day Relative Strength Index (RSI) remaining above 50. Key support levels are identified at the 50-day EMA around 0.5717, with potential for further gains if the pair maintains momentum above this threshold. 

EUR/USD Faces Potential Pullback Towards 1.0725

The Euro (EUR) is experiencing downward pressure against the US dollar, with forecasts suggesting a possible pullback toward the 1.0725 level. This projection is based on technical analysis and current market dynamics, including recent tariff threats by US President Trump and dovish commentary from the European Central Bank (ECB). Traders are advised to monitor upcoming US data releases and Federal Reserve communications for further insights into potential EUR/USD movements.

Gold Prices Maintain Position Above $3,000 Amid Positive Risk Tone

Gold continues to trade above the $3,000 threshold, supported by a positive risk tone in the market. While bullish conviction appears limited, the metal’s ability to hold above this level reflects ongoing demand amid economic uncertainties. Investors are advised to remain cautious, as market sentiment can be volatile, and geopolitical developments may influence gold’s trajectory.

Crude Oil Prices Exhibit Bullish Momentum at European Opening

Crude oil prices are showing bullish momentum as European markets open, driven by factors such as supply concerns and geopolitical tensions. The market is closely monitoring inventory data and OPEC+ production decisions, which are expected to influence price movements in the coming sessions. Traders should stay informed on global demand forecasts and any developments that could impact oil supply dynamics.

Broader Market Context

Market volatility remains a dominant theme as investors react to ongoing geopolitical developments, inflation concerns, and central bank policies. In the currency market, the US Dollar continues to assert strength against its major counterparts, while commodities such as gold and crude oil remain sensitive to changes in risk sentiment and supply concerns.

In the equity markets, investor focus is on upcoming economic data releases and central bank signals. The outlook for risk assets is clouded by global inflationary pressures, ongoing supply chain disruptions, and the uncertain trajectory of global economic recovery. As central banks worldwide adjust their monetary policies to navigate these challenges, market participants remain cautious, closely watching inflation trends and upcoming policy decisions.

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