It was another risk-on day in the financial markets, as higher-yielding assets wound up mostly in the green, despite some dips early on.

From Australia’s surprise tax cuts to potential exemptions to U.S. tariffs, there were a few more reasons for investors to stay in a positive mood.

Here are the latest updates you need to know.

Headlines:

• BOJ January meeting minutes showed higher inflation forecasts and willingness to tighten policy further
• Australian government announced tax cuts and an extension of energy rebates in the pre-election budget
• People’s Bank of China (PBOC) to inject 450 billion CNY of liquidity into the market and has introduced a new method for pricing its one-year loans to banks
• U.S. military plans to launch strikes on Iran-backed Houthi group leaked on group chat
• Germany Ifo Business Climate for March 2025: 86.7 (87.9 forecast; 85.2 previous)
• ECB officials stuck to a neutral data-dependent view in their testimonies:
  • ECB member Peter Kazimir said he’s open to discuss rate cut or pause in April, and that services inflation will be key
  • ECB member Madis Muller said any further cuts will depend on tariffs, and that a rate cut pause can’t be ruled out
  • ECB member Boris Vujcic said the April meeting is “completely open” as more data is needed
• U.K. CBI Distributive Trades for March 2025: -41.0 (-30.0 forecast; -23.0 previous)
• U.S. Building Permits (Final) for February 2025: -1.0% m/m (-1.2% m/m forecast; -1.2% m/m previous)
• Fed official Kugler noted that progress toward the Fed’s 2% inflation target has slowed since last summer
• White House announced that Russia and Ukraine have agreed to a ceasefire in the Black Sea
• U.S. House Price Index for January 2025: 0.2% m/m (0.3% m/m forecast; 0.4% m/m previous); 4.8% y/y (4.7% y/y forecast; 4.7% y/y previous)
• U.S. S&P/Case-Shiller Home Price for January 2025: 0.1% m/m (0.1% m/m forecast; -0.1% m/m previous); 4.7% y/y (4.5% y/y forecast; 4.5% y/y previous)
• Fed official Williams pointed out that households and firms are seeing higher uncertainty these days
• U.S. New Home Sales for February 2025: 1.8% m/m (0.5% m/m forecast; -10.5% m/m previous)
• U.S. CB Consumer Confidence for March 2025: 92.9 (94.4 forecast; 98.3 previous)
• U.S. Richmond Fed Manufacturing Index for March 2025: -4.0 (5.0 forecast; 6.0 previous)

Broad Market Price Action:

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

Mixed price action was seen during the first few hours of the Asian trading session, as crude oil extended some of its positive momentum from the previous day while U.S. equity futures braced for a few top-tier reports lined up.

However, the energy commodity dipped slightly on news that Russia and Ukraine agreed to a ceasefire in the Black Sea, then later on retreated from its rebound when the U.S. printed net negative data. Equity indices also dipped upon seeing consumer confidence numbers come in the red but still sustained a positive finish.

Gold started off with a bit of consolidation before getting back on its feet and sustaining its climb, ending 0.30% higher for the day after a pullback during the U.S. session. Although tariffs drama didn’t exactly escalate during the day, investors appeared wary of the national security fallout from U.S. military plans being leaked on a group chat.

Bitcoin, which had a rough start as it dipped back to the lows around $86,400, recovered as London markets opened and soon made its way back to positive territory to close around $88,000.

Treasury yields were having a pretty good run during early trading sessions, but mostly weaker than expected U.S. data and some cautious remarks from Fed officials dragged the 10-year yield back to negative territory to close 0.48% in the red.

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

Overlay of USD vs. Major Currencies Chart by TradingView

The Australian dollar got a boost early on thanks to unexpected tax cuts and an extension of energy rebates unveiled during their government’s federal budget announcement. Still, most major pairs moved sideways throughout the Asian session, with the exception of USD/JPY which was cruising slowly south.

A broad dollar selloff was seen a few hours into the London session, as markets seemed to digest reports that Trump is considering a two-step tariff regime next month using emergency powers to impose immediate tariffs. More progress in a Russia-Ukraine ceasefire also emerged, as both countries agreed to a truce in the Black Sea.

The decline seemed to pause around Fed officials Kugler’s speech, as she seemed optimistic about inflation and employment prospects, but gains were limited after U.S. data points turned out weaker than expected. The Richmond Fed index slipped from 6 to -4 instead of improving as expected while the CB consumer confidence index tumbled from an upgraded 100.1 reading to 92.9 in March.

Still, the dollar managed to close higher against the euro (+0.08%) while ending in negative territory versus the rest. USD/JPY barely pulled up from its slide, closing 0.52% lower by session’s end.

Upcoming Potential Catalysts on the Economic Calendar:

• U.K. Consumer Price Index growth rate for February 2025 at 7:00 am GMT
• U.K. PPI Input/Output growth rate for February 2025 at 7:00 am GMT
• U.K. government annual budget release coming up
• France Consumer Confidence for March 2025 at 7:45 am GMT
• Canada Wholesale Sales for February 2025 at 12:30 pm GMT
• U.S. Durable Goods Orders for February 2025 at 12:30 pm GMT
• Swiss National Bank Quarterly Bulletin at 2:00 pm GMT
• U.S. Fed Kashkari Speech at 2:00 pm GMT
• U.S. Fed Musalem Speech at 2:10 pm GMT
• U.S. EIA Crude Oil Stocks Change at 2:30 pm GMT
• Canada BoC Summary of Deliberations at 5:30 pm GMT

Additional volatility for sterling could be in the cards for today, as the U.K. economy gears up to print its latest CPI report while the government is scheduled to release its annual budget statement.

As always, keep your eyes and ears peeled for geopolitical headlines and tariffs-related updates that could strongly influence overall market sentiment.

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