STOCKS

Stock markets enjoy a mostly positive week with central banks on focus. US equities were higher on Monday as investors awaited fresh monetary policy guidance from the Federal Reserve. Tech giants were leading the gains at the start of the week, with Nvidia shares adding 0.7% on the first day of the company’s GTC Conference. On Thursday, all three major US stock indexes registered new record closes for the second day in a row to mark the fourth straight winning session. The buying pressure was driven by optimism from the Fed’s expectation for three rate cuts this year even after a couple of stronger-than-expected inflation reports. The Dow Jones closed up 0.7%, the S&P 500 index advanced 0.3%, and the Nasdaq Composite added 0.2%. For the week, the S&P 500 so far adds 2.4% and the Nasdaq is rising nearly 2.7%, while the Dow is almost 2.8% higher and on pace for its best week since late-last year.

CURRENCIES

The USD index climbed to one-month highs to bounce aggressively after a dip in a knee-jerk reaction to a slightly dovish message from the Federal Reserve. Despite the rising inflation, the US central bank continues to forecasts three rate cuts this year. The resurgent demand for the dollar was in part driven by strong economic data out of the United States. In particular, purchasing managers index data showed on Thursday that manufacturing activity grew more than expected in March, while services remained in expansion. As such, the buck has been rallying since yesterday, clinging to one-month highs ahead of the weekend. After a short-lived sell-off in a knee-jerk reaction to the Fed’s relatively dovish message, the USD index resumed the ascent to settle above the 104.00 figure. The greenback extended gains to the 104.45 zone, with the 104.50 resistance in focus at this stage. On the downside, the 104.00 mark represents the immediate significant support, followed by 103.80.

OIL

Oil prices stay pressure for the third session in a row on Friday after a brief rally towards early-November highs earlier in the week. Brent crude peaked at $87.70 and has been retreating since then. Ahead of the weekend, oil futures have settled around $85.80, struggling for direction slightly above the flat line. Brent is now pressured by the prospect of a ceasefire in the Middle East, a stronger US dollar, and some profit-taking after the recent gains. The US is set to table a United Nations draft resolution for an immediate ceasefire in Gaza. On the positive side, US commercial crude stocks continued to fall last week as refinery run rates hit their highest levels since early January. According to data from the US EIA, crude oil inventories for the week ended Marср 15 decreased by 2.0 million barrels. In other industry news, the EIA increased its forecast prices for crude oil and petroleum products for the remainder of 2024 in its March Short-Term Energy Outlook. In the near term, Brent crude needs to hold regain the $86 figure that represents the immediate upside target for the bulls.

GOLD

Since peaking at fresh record highs around $2,225 on Thursday, gold prices have been correcting lower gradually. The XAUUSD pair saw a modest spike during the previous session to come under renewed selling pressure eventually. A failure to regain the $2,200 zone triggered another local profit-taking, with prices barely holding above the $2,160 support zone. Despite the retreat, the overall bullish trend remains intact, with fresh record highs in focus. The futures could resume the ascent after the current retreat, with Fed rate cut expectations supporting the yellow metal. In the near term, the XAUUSD pair needs to hold above the $2,150 zone in order to avoid a deeper retreat towards the $2,130 next support area. On the upside, a decisive recovery above $2,180 would bring the $2,200 psychological level back into the market focus. Should dollar demand wane in the weeks to come, gold may refresh all-time highs above the mentioned top.

CRYPTO

Bitcoin stays mildly pressured so far on Friday after another retreat witnessed during the previous session. A mixed-to-bearish bias dominates the cryptocurrency market since last week when the digital coin registered fresh all-time highs in the $73,600 area amid strong demand for spot Bitcoin ETFs. A failure to hold above the $70,000 psychological level triggered aggressive profit-taking that pushed the prices below $61,000 earlier in the week. Now, it looks like bitcoin is suffering the inevitable correction before the digital currency could resume the ascent. Despite the recent downturn in the cryptocurrency market, investors hopefully of await the upcoming halving event. In anticipation of the event, bitcoin's recent retreat from all-time highs looks like a buying opportunity. As such, traders now have a chance to reposition their risk before the halving event that will reduce the mining reward from 6.25 BTC to 3.125 BTC per block. In the near term, the BTCUSD pair needs to hold above the $65,000 psychological level that represents the key nearest support at this stage.