Light news flow as investors await key economic data

In the Stock Market

After a relatively uneventful Asian and European trading sessions characterized by light news flow and mixed regional index performance, investors turn their attention to key economic data releases. The day ahead is expected to remain subdued, with focus primarily on the upcoming release of the March Conference Board Consumer Confidence Index and its potential impact on market sentiment.

The anticipated March CB Consumer Confidence report is forecasted to show an improvement to 106.9 from February's 106.7. This report plays a crucial role in providing detailed insights into consumer attitudes and expectations, offering valuable information on current business conditions and future developments. A better-than-expected reading could potentially aid the USD in recovering from its modest losses witnessed on Monday.

In the commodities market

the price of gold continues to trade within a narrow range above the $2,170 level. Despite experiencing modest gains overnight, gold struggles to capitalize on the momentum, as traders remain on the sidelines ahead of Friday's release of the US Personal Consumption and Expenditure (PCE) Price Index. This data release holds significance as it could influence market expectations regarding the Federal Reserve's rate cut trajectory, providing fresh direction for the non-yielding precious metal.

In the currencies market

The recent indication by the US Federal Reserve of its intention to cut interest rates by 75 basis points in 2024 continues to exert pressure on US Treasury bond yields, thereby weighing on the US Dollar (USD) and offering support to gold prices. Additionally, geopolitical tensions stemming from the ongoing conflicts t contribute to the upward bias for the safe-haven asset.

In the digital assets market

Bitcoin's price is poised to potentially set a new all-time high (ATH) ahead of the halving event, a rare occurrence that historically initiated a potential post sell-off, particularly considering the declining ETF flows. This dynamic suggests that market participants are closely monitoring developments surrounding the halving and its potential impact on Bitcoin's price trajectory.