Global Forex Market Insights

Global Economic Weekly Report - Full Article

This week's global economic report covers the following key points:

• Federal Reserve Decision: The Fed decided to keep interest rates unchanged during its March meeting, while signaling a possible rate hike later this year, citing the strong US labor market and persistent inflation pressures.
• European Central Bank: The ECB maintains its tightening policy and plans to gradually reduce its asset purchase program to curb high inflation's impact on the eurozone economy.
• Bank of Japan: The BOJ continues its ultra-loose monetary policy but expressed concerns about nearing its inflation target, raising speculation about potential policy shifts.

In addition, we offer an in-depth look at international trade patterns, highlighting recent progress in US-China trade talks and potential opportunities from the Southeast Asia regional free trade agreements.

Our comprehensive analysis suggests that global economic recovery still faces challenges, and investors should closely monitor key economies' policy directions.

Market Hotspot: Dollar Strength & Eurozone Challenges - Full Article

Recently, the US Dollar Index has continued its upward momentum, driven mainly by the following factors:

1. US Economic Data: Employment and retail sales data exceeded expectations, boosting the dollar's safe-haven appeal.
2. Risk Aversion Demand: Ongoing global geopolitical tensions have led investors to favor holding US dollar assets.

In contrast, the eurozone is facing the following challenges:

• Germany's industrial output slowdown dampens overall economic confidence.
• Fiscal deficit concerns in France and Italy weigh on market sentiment.

From a technical perspective, the Dollar Index has broken key resistance levels, signaling potential further gains in the short term. Meanwhile, the EUR/USD pair remains under pressure, with the potential for short opportunities in the near future.