18/03/2026
The major theme in the currency markets remains US Dollar weakness, driven by rising expectations for a sizable Fed rate cut next week.
The overarching theme for the currency markets today is USD strength, driven by stickier-than-expected US inflation data and a growing consensus for a 0.25% rate cut by the Federal Reserve next week.
Market focus today is centred on the release of US Consumer Price Index (CPI) data, which will be critical in shaping expectations for the Federal Reserve’s upcoming interest rate decision.
Global market sentiment remains cautious as central banks in major economies, including the Federal Reserve, ECB, and BoE, are leaning towards dovish policies amidst mixed economic data.
The week ahead promises heightened volatility across EUR, GBP, and USD pairs, with key data releases likely to drive significant market moves.
Global markets remain cautiously optimistic but are on edge as key economic data from the US and Eurozone dominate the narrative.