Strong dollar impacting global assets

Asian Sesison

The close of the Asian market signaled a downturn in market sentiment in China, with equities struggling to maintain momentum seen earlier in the year, largely due to weak corporate earnings, particularly in the property sector and financial industry.

European Session

In Europe, the German IFO Business Climate Index surpassed expectations in March, reaching 87.8, while the IFO Current Economic Assessment improved to 87.5. Despite the positive survey, EUR/USD faced pressure but managed to defend the 1.0800 level.

The Pound Sterling also faced downward pressure amid growing expectations of interest rate cuts by the Bank of England later this year. Although UK Retail Sales data for February exceeded expectations, indicating some spending momentum among households, it wasn't enough to counter expectations of a rate reduction.

Commodities

Meanwhile, gold prices continued to decline during the European session, extending the retracement slide from the record peak. Similarly, WTI crude oil prices remained under pressure for the third consecutive day, driven by a stronger dollar and hopes for a ceasefire in Gaza.

Today, a series of speeches from central bankers of the Federal Reserve and the European Central Bank is scheduled, potentially impacting volatility in the EUR and USD markets. Fed Chair Powell is among the speakers, set to deliver opening remarks at the 'Fed Listens' event.