The major assets were all over the charts as traders reacted to geopolitical tensions, central bank expectations, and fresh economic data.

Gold hit a record high, U.S. stocks pulled back after a brief rebound, and the U.S. dollar faced mixed moves amid shifting risk sentiment.

Here are the major drivers and moves you may have missed in the previous trading sessions:

Headlines:

• RBA Deputy Gov. Sarah Hunter said the board is more cautious about further easing than the market; focused on U.S. policies and their impact on local inflation
• Germany approves massive spending package to boost defense and infrastructure spending
• Germany ZEW economic sentiment index for March: 51.6 (45.0 forecast; 26.0 previous)
• Euro Area trade balance for January: 1.0B (12.5B forecast; 15.5B previous)
• Euro Area ZEW economic sentiment index for March: 39.8 (38.0 forecast; 24.2 previous)
• Canada CPI 1.1% m/m (0.6% forecast; 0.1% previous); 2.6% y/y (2.2% forecast; 1.9% previous); Core CPI at 1.1% m/m (0.6% forecast; 0.1% previous); 2.7% y/y (2.2% forecast; 2.1% previous)
• U.S. industrial production for February: 0.7% (0.4% forecast; 0.5% previous); 1.4% (2.3% forecast; 2.0% previous)
• Russian President Putin committed to limit Russian attacks on Ukrainian energy infrastructure for 30 days but declined to accept the broader ceasefire
• Treasury Secretary Scott Bessent believes the underlying economy is healthy and there’s no reason for the US to see a recession
• New Zealand global dairy trade price index for period ending March 18: 0.0% (-0.5% previous)
• API: U.S. crude oil inventories rose by 4.59M barrels (vs 1.7M increase expected) in the week ending March 14

Broad Market Price Action:

Dollar Index, Gold, S&P 500, Oil, U.S. 10-yr Yield, Bitcoin Overlay Chart by TradingView

Markets were all over the place as traders juggled Middle East tensions, central bank expectations, and fresh economic data.

Gold extended its winning streak, soaring to a record high of $3,038 as safe-haven demand ramped up after Israel broke its ceasefire with Hamas. But oil prices bucked the trend, slipping despite geopolitical risks.

WTI crude fell 1% to $66.90, and Brent dropped 0.76% to $70.56, as the Trump-Putin agreement to pause attacks on Ukrainian energy infrastructure helped ease supply concerns, even with global growth worries tied to looming U.S. tariffs.

U.S. stocks lost steam after a two-day rebound, with the Nasdaq leading the drop, down 1.71%. The S&P 500 slid 1.07%, while the Dow dipped 0.62%. Tesla took another hit, falling 5.3% and deepening its year-to-date loss to over 40%.

The slide came despite upbeat U.S. economic data, as investors stayed cautious ahead of the Fed’s decision. Meanwhile, Treasury yields edged lower, with the 10-year yield falling to 4.28% after strong auction demand.

Across the Atlantic, European markets rallied. The German DAX jumped 0.98%, fueled by the German parliament’s approval of a massive €500 billion fiscal package and a surprisingly strong German ZEW Economic Sentiment reading, which surged to 51.6 from 26.0 – blowing past expectations. The Eurozone ZEW index also jumped from 24.2 to 39.8.

Bitcoin had a rollercoaster session, swinging more than $2,000 before settling around $82,700.

FX Market Behavior: U.S. Dollar vs. Majors:

Overlay of USD vs. Major Currencies Chart by TradingView

The U.S. dollar started Tuesday with modest gains during the Asian session as traders reacted to renewed geopolitical tensions in the Middle East. Israel broke its ceasefire with Hamas and launched airstrikes in Gaza, fueling demand for safe-haven assets.

But the dollar’s early strength didn’t last. It tumbled in Europe, after Germany’s economic sentiment reading blew past expectations. The upbeat outlook, combined with Germany’s approval of a massive €500 billion fiscal package, lifted the euro and kept the Greenback under pressure throughout the European session.

The dollar did find pockets of strength. It climbed against the Canadian dollar after Canada’s inflation came in hotter than expected at 2.6%, raising doubts about the Bank of Canada’s (BOC) ability to cut rates. It also gained against the Japanese yen as improved risk sentiment reduced demand for the yen’s safe-haven appeal.

In the U.S., traders remained cautious as they braced for President Trump’s upcoming tariffs and awaited the Trump-Putin talks. Even with U.S. housing starts jumping 11.2% and industrial production rising 0.7% in February – both topping forecasts – investors were reluctant to push the dollar higher.

By the end of the day, the dollar had settled lower against the safe havens and European currencies but maintained gains against the comdolls.

Upcoming Potential Catalysts on the Economic Calendar:

• BOJ’s monetary policy decision scheduled today
• Euro Area final CPI reports at 10:00 am GMT
• U.S. crude oil Inventories at 2:30 pm GMT
• FOMC policy decision and economic projections at 6:00 pm GMT
• U.S. FOMC press conference at 6:30 pm GMT
• New Zealand GDP at 9:45 pm GMT

Traders have a packed day ahead, with not one but two central bank decisions coming up. Both the Fed and BOJ are expected to hold rates steady in March, but their economic projections and forward guidance could shake up the major currencies.

On top of that, expect some extra volatility from the Euro Area’s final CPI release and New Zealand’s GDP data. And, of course, keep an eye on any headlines that could stir up geopolitical risks and overall market sentiment.

Don’t forget to check out our brand new Forex Correlation Calculator when taking any trades!