Global financial markets witnessed notable movements today, influenced by the release of inflation data from Australia and the UK, in addition to durable goods data from the United States. These indicators reflected on the performance of major currencies such as the Australian dollar, the British pound, and the US dollar, along with their impact on stock markets and commodity prices.
Australian Dollar Falls After Weak Inflation Data The Australian dollar faced significant selling pressure, with its index declining to 62.86 points, affected by a drop in Australian inflation to 2.4% year-on-year by the end of February, which was below market expectations. This data strengthened the likelihood of monetary policy easing by the Reserve Bank of Australia, which increased pressure on the Australian dollar.
British Pound Declines with Weak Inflation in the UK The British pound fell by 0.45% to settle near 128.84 points, after British inflation data revealed a decrease to 2.8%, reinforcing expectations that the Bank of England may soon lower interest rates to support the economy. This increases selling pressure on the British pound amid speculations of further monetary easing.
US Dollar Gains After Rise in Durable Goods On the other hand, the dollar index rose by 0.37% to reach 104.60 points, benefiting from the strength of US durable goods data, as orders increased by 0.9% during February, exceeding expectations of a decline of 1.1%. The data showed a slight upward revision of the previous increase, boosting investor confidence in the US economy.
Oil Prices Rise Amid Strong Demand Expectations Oil prices recorded a notable rise, as West Texas Intermediate crude contracts jumped to $69.68 per barrel, supported by expectations of increased demand for oil in the United States. This rise followed the release of US oil inventory data revealing a decrease of 3.3 million barrels last week, compared to expectations of a decrease of about 1.5 million barrels only.
Gold Slightly Declines with Rising Dollar Gold prices fell by 0.10% to reach $3,017 per ounce, affected by the rise in the US dollar and the release of positive economic data that boosted expectations of maintaining high interest rates for a longer period. Additionally, comments from Federal Reserve officials indicating no intention to lower interest rates in the near future affected investor sentiment in the gold market.
Bitcoin Declines Due to Profit-Taking The Bitcoin currency saw a decrease of 1.90%, falling to $86,000, after strong profit-taking following its recent rise. Despite ongoing optimism about digital assets, the strength of the US dollar overshadowed demand for cryptocurrencies, leading to some selling pressure.
US Stock Indices Decline Amid Recession Fears US markets faced strong selling pressure, with the Dow Jones Industrial Average dropping by 0.51% to 42,369.25 points, while the S&P 500 Index lost around 1.30%, falling to 5,701.84 points. The Nasdaq Index suffered larger losses of 2.25%, reaching 17,860.57 points, driven by investors' fears of a potential economic recession in the United States, particularly after warnings from leading analysts regarding weak consumer confidence.
